Vestas to close Spanish nacelle factory

SPAIN: Vestas will close its nacelle assembly factory in Leòn in the north-west of the country due to decreasing European demand for its 2MW turbines, it has announced.

Vestas decided to close the factory due to a drop in demand for its 2MW turbines (above) in Europe
Vestas decided to close the factory due to a drop in demand for its 2MW turbines (above) in Europe

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The manufacturer also said demand for its 4MW platform in the region could be met by less capacity than currently provided by nacelles factories elsewhere — both in Europe and in other regions.

Vestas explained that ceasing production in Leòn was a necessary response to these developments and would help "sustain its competitiveness".

All 362 employees at the Leòn plant have been informed of its closure, Vestas added. The manufacturer will now start negotiations with local works councils for the employees.

The company may relocate former Leòn employees to its other factories in Spain, and is also considering relocation to companies other than Vestas "through an outplacement plan", it stated.

Vestas added the financial cost of closing the assembly factory would mainly relate to a reduced value of the land and the buildings at the site.

These costs would be recorded as ‘special items’ in the manufacturer’s third quarter financial results, it stated.

Announcing the factory’s closure, the manufacturer insisted that Spain, where Vestas has more than 4GW of turbines installed, "remains a key market".

In the last year, Vestas has announced plans for nacelles facilities in Russia and Argentina.

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