Published: Oct 27, 2010
Danish wind turbine manufacturer Vestas has today announced 3000 job cuts and the closure of five plants, in response to a slowdown in demand in the US and policy uncertainty in other key markets.
The company, which is the world’s biggest wind turbine maker, posted a smaller-than-expected drop in third-quarter profits, but said markets in Europe would not live up to its expectations next year, sending its shares down seven per cent on Tuesday.
Speaking about the market conditions in an interview with Reuters, Vestas’ executive director Ditlev Engel, said that indebted European governments are not investing in new energy projects, which has delayed recovery. “A lot of countries are facing a challenging 2011 in terms of budget deficits and other financial issues. It is a hard time to see a lot of activity in this area compared to what we had initially expected,” said Engel.