Vestas To Close Spanish Wind Turbine Factory Due To Lack Of Demand
By Paul Homewood
The following news release is from Vestas:
To sustain its competitiveness in the growing global market for wind energy, Vestas continuously introduces new products and optimises its global footprint to meet market demand across regions. By doing so, Vestas aims to ensure a competitive product portfolio, economies of scale and continuous optimisation of manufacturing, transportation, and sourcing costs.
Recent market developments have seen a decreasing demand for the 2 MW wind turbine platform in Europe, while the demand for the 4 MW platform in the region can be met by less capacity than currently provided by nacelles factories in Europe and other regions where Vestas recently has established production capacity.
Responding to these market developments and to sustain its competitiveness, Vestas intends to cease production at its assembly factory in León, Spain, affecting all of the factory’s 362 employees. The employees have been informed about the intention to cease production through the local works council and will also receive a letter from Vestas with information on the situation and contact details for further information.
As per Spanish law, Vestas will now initiate negotiations with local works councils for all affected employees. Vestas is exploring opportunities to relocate employees from León to other Vestas manufacturing and service sites in Spain, as well as opportunities outside of Vestas through an outplacement plan. The negotiations are expected to be finalised within 30 days from commencement, as prescribed by Spanish law.
Spain remains a key market to Vestas with more than 4 GW of installed turbines, 6 GW under service and around 2,000 employees as of 30 June 2018. Vestas continues to have a strong local footprint to serve Spanish and international markets, including a generator factory in Viviero and a blades factory in Daimiel where Vestas is investing to set up production of blades for the V150-4.2 MW turbine. Additionally, Vestas also has Service hubs and warehouses, its Mediterranean headquarters in Madrid and a strong local supply chain in Spain.
The financial cost of ceasing production at the assembly factory in Leon will mainly relate to write down of land and buildings. These costs will be booked as special items and will be included in third quarter of 2018.
https://www.vestas.com/en/media/company-news?n=1798105#!grid_0_content_0_Container
Hardly a sign of a thriving market!
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NOT A LOT OF PEOPLE KNOW THAT 
Reblogged this on Climatism and commented:
“Green Energy Future” Update…
Market forces at work.
But I have a genius idea–put solar cells on the wind turbine blades. It will keep the dust off and is sure to bamboozle the “warmists”
Bob Hoye
Wind turbines will go down as one of the biggest boondogles/scams ever. Wait until decommissioning comes, which isn’t that far off, and watch as the people that paid for them with taxes and higher energy rates see their taxes and rates increase even more to rid of them. Generations to come will be reminded as they see hill tops and plains covered with rusting relics of political expedience to nowhere.
Amen. How many cubic yards on concrete (which is basic material) has been poured onto the ridges of West Virginia where the native vegetation was skinned off. That native vegetation requires acid soils. I shudder to think of the leaching of basics into those soils–here come the European weeds to replace the native species.
Where are the environmentalists???? Crickets chirping.
Dear (Former) Employee
Our sales team is running out of idiots to buy our worthless crap.
Therefore, we are adjusting our global footprint. Unfortunately, the foot is being redeployed to kick your backside.
In case you do not understand the situation, the essence is that, shortly after the kick, you will find yourself ‘outplaced’ in the gutter.
If you still do not understand:
“You’re fired!”
I live close to Hull where the Seimens worthless windmill factory is. I wonder how much longer it will be in business.
I don’t like to see people lose their jobs, but let’s face It, this ‘sustainable ‘ industry is unsustainable without taxpayers money. Let’s hope this industry goes bump and the workers can find jobs elsewhere.
I predict that fewer people will lose their jobs than lost their jobs than with coal, oil and gas industries. Frankly, I don’t remember the environmentalists wringing their hands over them.
“To sustain its competitiveness in the growing global market for wind energy”
“Recent market developments have seen a decreasing demand for the 2 MW wind turbine platform in Europe, while the demand for the 4 MW platform in the region can be met by less capacity than currently provided by nacelles factories in Europe and other regions where Vestas recently has established production capacity.”
If the global market is “growing” as they maintain, wouldn’t it make sense to convert the 2 MW factory to a 4 MW factory?
Usual corporate bullshit.
Zactly. If the ‘growing global market’ gets any bigger, they’ll be closing all their factories.
I think most of the commentators are interpreting this news incorrectly.. The factories are closing for the 2MW units because (increasing) demand for windpower can be met by the larger units at a lower cost per unit of electricity production. Its true that in the European markets, consumers are footing a large subsidy bill for windpower, but growth markets these days are enjoying cut price wind energy – for example, around 3GW to be installed at ~USD 40/MWh contracted price by 2021 in South American markets.. Not a particular fan of intermittent windpower but the spin is not correct I´m afraid..!
Wind turbine energy production is more expensive than anything else. Think you need to revise up on this. Paul has broken down how ridiculous these costs truly are compared with has turbines, coal or nuclear.
My sources are that large volumes (multiple GW project sizes) of wind energy have been won at USD 40-50/MWh in various Latin American public tenders.. Issues of intermittency aside (and they are not trivial), that is pretty cheap energy and on a par with coal and about half of the cost of natural gas fired thermal power in those markets.. If it turns out to be speculation on the part of the developers then you may be right, but indications are that these investments will be made – and the cost of windpower has dropped significantly due to larger turbine sizes..
Don’t forget these are based on dirt cheap Latin American labour costs, and cannot be directly translated into UK costs.
In Britain, the wholesale market price is around £50/MWh, yet virtually no new wind capacity is being added. The few bits that are will still receive massive subsidies as they were in the pipeline when ROCs ended.
At the end of the day, the market will bring forward more wind capacity if it is competitive. We don’t have to speculate about theoretical costings
Back to making matches!