Vestas (VWS.CO), the world’s largest wind-turbine maker, has fired 11 employees in connection with an ongoing sit-in at the company’s blade factory on the Isle of
Wight, UK.
On April 28, 2009, Vestas announced it expected to lay off approximately 1,900
employees at the company’s production units in Northern Europe, primarily in
Denmark and UK, as part of a wider capacity reduction strategy in Northern
Europe.
Vestas said the announcement was made in response to conditions in the Northern European
markets not having met the company’s expectations.
At the same time, Vestas is investing in a
significant production base in the US. The expansion in the US has created
substantial excess production capacity in Northern Europe, which previously manufactured turbines for the US market.
In August 2008
Vestas announced plans to convert the production at the factory on the Isle of Wight from 40-metre
blades for its V82 turbine to 44-metre blades for the V90 wind turbine, a
turbine which the company says is particularly well-suited for the UK onshore and offshore
market.
However, as a result of the current market conditions in Northern Europe and "the planning
process in the UK," Vestas said it has decided not to move forward with conversion plans. As a result, about 600 employees on the Isle of Wight are expected to be laid off on July 31.
On July 20, about 25 workers barricaded the doors in the offices on the top floor of the factory to protest the job cuts.
Vestas issued a statement saying that it dismissed by letter 11 workers involved in the protest.
Despite the UK government’s strong commitment to renewable energy, Vestas said the "local
planning process for the construction of new onshore wind power plants in the UK
remains an obstacle to the development of a more favourable market for onshore
wind power."
The company said a large and
stable market for onshore wind power is vital to secure a stable production
flow, and if such a market develops, the company will reconsider investing in new manufacturing
capacity in the UK.
Vestas said it will proceed with its previously announced plans to expand its existing research
and development activities on the Isle of Wight by making
investments in a new blade technology center on the island. The centre will be
capable of designing, manufacturing prototypes and testing the world’s largest
wind turbine blades and is scheduled to open in 2011.
However, the center, which currently employs 110, is expected to grow by only 40 staff positions.
Bloomberg reported that a UK court postponed a legal attempt to have the protesters removed from the production facility, because Vestas did not supply the names of protestors.
That report is available at the link below.
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