United States

United States

LM makes US job cuts

UNITED STATES: LM Wind Power is to cut 234 roles at its Little Rock, Arkansas manufacturing plant in response to the government's non-renewal of the Production Tax Credit (PTC).

LM said it was making 94 full-time redundancies (inc 14 administrative staff) and cutting 140 temporary workers. The company was unable to confirm the total staff account at the Little Rock factory although it employs 1,100 across its US operations.

LM anticipates a 70% decline in US orders in 2013 if the PTC is not renewed. It said it would continue to reassess its US operations in the absence of the PTC.  

Speaking about the decision, LM US head of manufacturing Bill Burga, said: "Every LM asset globally is geared to deliver optimal performance in changing circumstances and the North American manufacturing organisation is no exception.

"The challenging situation in the US wind market is not specific to LM or to the Little Rock manufacturing facilities, the whole sector is affected. As always, our first concern is protecting the long term viability of our operations and the jobs they support."

There is some hope for an extension of the PTC. Last week, the US Senate Finance Committee passed a one-year extension of the PTC as part of a $205 billion package renewing dozens of expired and expiring tax breaks.

However, with lawmakers heading out of Washington for a five-week recess, the legislation will not be considered by the full Senate until September.

Last month, Gamesa made 165 temporary lay-offs at its two factories in Pennsylvannia while Vestas said it would cut 1,600 jobs if the PTC renewal does not go through this year.

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