Repower announces job and cost cutting plans

GERMANY: Suzlon-subsidiary Repower has announced it is to cut around 750 jobs across its global workforce as it seeks to reduce operational costs.

Repower CEO Andreas Nauen... looking to cut costs
Repower CEO Andreas Nauen... looking to cut costs

In a statement, Repower said it was attempting to cut costs by EUR 100 million for the 2013-14 financial year. It did not reveal where the job cuts would be made.

Speaking about the decision, Repower chief executive Andreas Nauen said that although the long term for the wind industry looks good, the mid-term was "uncertain and volatile".

He added: "We will apply leverage wherever we have recognised need for action and will be able to realise savings potential, for example in purchasing, production or manufacturing."

The cuts come despite Repower's strong performance in 2012. According to 2012 installation figures from BTM, Suzlon Group pushed itself into the top 5 with 7.4%.More than 5% of this came from Repower.

The Repower announcement follows the approval of Suzlon's application for corporate debt restructuring. Last year, Suzlon unveiled "project transformation", a bid to cut manpower costs by 20%.

In March, Repower said it was allowing contracts with around 400 temporary staff to expire at its offshore-blade subsidiary Powerblades.

At the time, Repower said the job losses are due to delays in investment decisions for offshore projects in Germany and the resulting lack of follow-up orders.

Update. Suzlon denied Repower's cost cutting plan is related to Project Transformation and said the move was an independent action by the German company. 

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