Vestas to Cease Production at 3 European Factories

To meet the manufacturing requirements of its changing product portfolio, Danish wind turbine manufacturer Vestas has been intending to cease production at its factories in Lauchhammer in Germany, Viveiro in Spain and Esbjerg in Denmark.

September 21, 2021. By Manu Tayal

To meet the manufacturing requirements of its changing product portfolio, Danish wind turbine manufacturer Vestas has been intending to cease production at its factories in Lauchhammer in Germany, Viveiro in Spain and Esbjerg in Denmark.

The company said in a statement that “the ongoing integration of our onshore and offshore business is a key part of this development, which we need to address to ensure we have an efficient operating model and manufacturing footprint.”

“As part of this development, we are announcing steps to adjust our manufacturing footprint in Germany, Spain, and Denmark,” it added.

The company sustained a strong footprint and continues to supply onshore and offshore wind turbine components to its customers from 12 sites across Europe, combining facilities owned by Vestas and its supply chain partners.

Commenting on the development, Tommy Rahbek Nielsen, Executive Vice President and COO of Vestas, said “today’s fast-moving energy transition, rapid introduction of new products and the recent integration of our onshore and offshore business require us to further mature and evolve our supply chain network and manufacturing footprint. While Vestas will sustain a strong footprint in Europe across manufacturing and service activities, it’s always hard to make decisions that negatively affect our good, hardworking colleagues at Vestas. I would like to emphasise that we are deeply committed to explore opportunities to relocate our colleagues, who unfortunately will be impacted by the cease of production at our factories in Lauchhammer, Viveiro and Esbjerg.” 

Vestas’ Lauchhammer factory in Germany has since it scaled-down activities 2 years ago maintained manufacturing of a limited number of blades for the V117 and V136 turbines and currently employs approximately 460 people.

The company is planning to meet future customer needs for its V117 and V136 turbines with supply from its other blade factories across the world.

It is intending to finalise production in Lauchhammer by the end of 2021. However, the company said that it will explore opportunities to relocate employees currently working in Lauchhammer to other sites in Germany across manufacturing and service. 
   
Similarly, Vestas’ Viveiro factory in Spain employs approx 115 people who manufacture generators for the 2 MW onshore platform as well as control panels for the V164 offshore turbine for markets outside of Spain.

Based on current plans, the company is likely to close production in Viveiro end of 2021 and will offer opportunities to relocate currently working employees to other sites in Spain.

Also, Vestas’ Esbjerg factory in Denmark employs approx 75 people who manufacture power conversion modules for the V164 and V174 offshore turbines.

Meanwhile, the company said that it is expected to conclude production in Esbjerg during H1 2022, and will explore opportunities to relocate employees currently working at the factory to other sites in Denmark. 
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