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Denmark

Denmark

Vestas close 22 warehouses in parts reorganisation

DENMARK: Vestas is to close 22 warehouses as part of a deal with transport and logistics company DB Schenker to handle the manufacturer's EMEA spare parts operation.

The move comes as Vestas looks to cut costs and outsource parts of the business. It said 150 jobs across the EMEA region would be affected, although some of these would be transferred to to DB Schenker.

DB Schenker is a freight subsidiary of German train operator Deutsche Bahn.

Vestas said the new spare parts network would largely be located in Leipzig, Germany, with three additional warehouses in Bucharest, Romania, Ourense in Spain and Umea in Sweden. Elsewhere, 75 "emergency-stock locations’' would provide a 2-3 hour wait for parts.

Speaking about the move, Tommy Rahbek Nielsen, Vestas' global senior vice president of supply chain planning, said : "Our supply chain setup becomes more scalable because we can open and close depots depending on service contracts with customers and adjust our warehouse capacity as the demand fluctuates."

Earlier this year, Vestas said it was looking to offload some of its factories involved in machining or producing raw materials.

Vestas chief executive Ditlev Engel said earlier this month that the company was still looking to cut staff and costs: "More than 5,000 jobs were cut last year. So we're close to 17,000 staff and want to get to 16,000, so there's still another 1,000-plus that have to go, and that will come from further optimisation of the organisation and divestments."

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