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Vestas to close three European factories

By: Tom Russell 20/09/2021 Vestas

General Turbines

Vestas has announce plans to cease production at three of its factories in Germany, Spain, and Denmark. Specifically, these changes concern the factories in Lauchhammer, Germany; Viveiro, Spain; and Esbjerg, Denmark.

Vestas’ factory in Esbjerg, Denmark employs approximately 75 people who manufacture power conversion modules for the V164 and V174 offshore turbines. As demand for these modules will gradually shift to markets primarily outside of Europe and be delivered via more localised manufacturing facilities, Vestas expects to conclude production of power conversion modules in Esbjerg during the first half of 2022.

Vestas stated it will explore opportunities to relocate employees currently working at the factory in Esbjerg to other Vestas sites in Denmark, and Denmark remains a core part of Vestas’ global footprint, with more than 5,900 employees as of August 2021.

Vestas’ factory in Lauchhammer, Germany has since it scaled down activities two years ago maintained manufacturing of a limited number of blades for the V117 and V136 turbines and currently employs approximately 460 people. Vestas expects to meet future customer needs for its V117 and V136 turbines with supply from its other blade factories across the world. The expectation is to finalise production in Lauchhammer by the end of 2021, while Vestas will explore opportunities to relocate employees currently working in Lauchhammer to other Vestas sites in Germany.

Vestas’ factory in Viveiro, Spain employs approximately 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. Due to both the decrease in demand for the 2 MW platform and the need to optimise offshore manufacturing, it is no longer sustainable to continue activities in Viveiro. Based on current plans, Vestas expects to finalise production in Viveiro end of 2021 and will offer opportunities to relocate employees currently working in Viveiro to other Vestas sites in Spain.

Where required by local law Vestas will now initiate legal proceedings and negotiations with worker’s representatives and the local work councils for all affected employees.

“Today’s fast-moving energy transition, rapid introduction of new products and 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”, said Executive Vice President and COO Tommy Rahbek Nielsen.

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Vestas to close three European factories

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