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Spain

Vestas cuts jobs and production in Spain

SPAIN: Vestas has announced it is to close one manufacturing plant reduce capacity at a second, as part of the company's global restructuring programme.

The Olvega factory produced parts for the V52 turbine
The Olvega factory produced parts for the V52 turbine

In a statement, Vestas said it was closing its plant in Olvega, which produced components for the V90 and V52 turbines, with the loss of 96 jobs. Additionally, it will be cutting 150 jobs (30%) of the workforce at its Daimiel V90 blade production plant.

Vestas Iberia general manager Miguel Picardo blamed the closures on the slowdown in the Spanish market.

He said: "Over the past years, Vestas has made great efforts to maintain the productive set-up in Spain. However, in the long term it is not sustainable that 95% of the local production is exported to other countries. Therefore, we have no other option, but to adapt our organisation and our costs to the reality of today's market."

Additionally, Vestas said it could not guarantee the renewal of temporary contracts at its Villandangos del Paramo factory, which employs 550 people.

Vestas is not the first manufacturer to make cuts to its Spanish operations. In May, Gamesa closed nacelle production at its Medina del Campo factory, one of three nacelle facilities it operates in the country.

Earlier this month, it was revealed that the then Gamesa chief executive Jorge Calvet was fulfilling his February 2011 threat to halve the company's Spanish turbine production capacity by 2013.

As of May, the Spanish manufacturer reduced capacity by 800MW. This represents a 40% cut on Gamesa's 2GW national capacity at the start of 2010.

Shortly after that, Gamesa closed its nacelle production at its Medina del Campo factory, one of three nacelle facilities it operates in the country.

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