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LM cuts 345 US jobs

UNITED STATES: LM Wind Power is to lose 345 roles at its Grand Forks, North Dakota factory, its second round of US job cuts in two months.

LM blamed the cuts on the likelihood US demand will fall following the expiry of the production tax credit. The company gave a similar explanation in August when it cut 234 roles at its Little Rock, Arkansas plant.

The Grand Forks cutbacks include 200 full time staff, 15 administrative staff and 130 temporary workers. Once they leave on 31 October, the plant will have 270 workers.

In a statement, the company said: "LM Wind Power will continue to retain a strong commercial, manufacturing and service presence in the Americas region with over 740 employees at four strategic locations across Arkansas, North Dakota, Illinois and Texas."

In August, LM said anticipated 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 Little Rock job cuts, 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."

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