Library filed under General from Denmark
The company suspended its 2020 guidance last month, but said in its earnings report on Tuesday that the level was still within its grasp. Vestas said that the loss, which was in line with their expectations, came from increased logistics costs and supply chain bottlenecks made worse by the coronavirus.
The new closures take the number of idled wind power factories on the continent to 19, all in Spain and Italy, the European countries worst hit by the pandemic. This figure also includes sites run by General Electric unit LM Wind Power.
A fall in prices and near collapse in the German market are among factors forcing Vestas to make the jobs cuts, according to Jacob Pedersen, a head analyst with Danish bank Sydbank who closely monitors the industry. “Prices are significantly lower than they were just two years ago. That’s why there’s a need to be very careful about costs,” Pedersen said.
Germany's renewable power industry is facing growing resistance to new onshore wind farms.
One community loves wind turbines; another resents them. What Germany gleans from two seaside communities may determine its carbon future.
Danish energy business Orsted has entered into an agreement with the U.S.-based D.E. Shaw Group to buy a 100 percent equity interest in its offshore wind developer Deepwater Wind.
Across the Americas region, Vestas saw deliveries fall 41% in the first six months of the year. However, order intake doubled, with continued high level of activity in the US and Argentina, as well as the addition of orders in Mexico, Bolivia and Panama.
Last week’s energy deal adopted by a majority in the Danish Parliament may turn out to have a sting in the tail for some; More turbines will be moved off the land and into offshore wind farms by 2030, but the ones left could be much bigger than they are today
The world’s largest wind turbine manufacturer saw profits drop 33 per cent
He states a number of reasons for the cuts including that "The global wind power market is becoming increasingly competitive. For the past 10 years, we have managed to lower prices by 40 percent in the industry. This development continues, and we must adapt the capacity in Aalborg to the current demand."
Governments from Europe to Latin America are replacing guaranteed set payments from green power sources, known as feed-in tariffs, with competitive tenders, putting downward pressure on prices throughout the supply chain.
Danish wind OEM Vestas has confirmed it plans to lay off some 350 workers at its blade factory in Lem, Denmark by year-end. The company blamed high manufacturing costs and salary levels, "compared to the market level within manufacturing" for the redundancies.
Vestas recorded orders totalling 2.4GW in the first quarter of 2016, but revenues were 4% down year-on-year.
Danish wind-turbine maker Vestas Wind Systems A/S (VWS.KO) on Friday reported a 38% fall in first-quarter net profit amid weaker deliveries during the first few months of the year, but beat analyst expectations.
Korsager told Børsen the strategy served a number of purposes. “We solve the problem of unsellable properties in peripheral regions,” she said.
At the end of 2010, the company changed its accounting procedures, with the claimants in the case asserting that the changes hid elements of the company's poor performance. It said this lead to an inflation of Vestas' share price.
The Danish financial crimes office’s 18-month investigation into a former Vestas head of finance, Henrik Nørremark, has taken a dramatic turn and has been expanded to include a number of other former Vestas bosses.
Denmark has a largely state-owned company called Dong Energy (which evidently is not a funny name in Danish) that its center-left government wants to partially sell to Goldman Sachs. This is prompting a massive popular and political backlash that's threatening to bring the governing coalition down.
Dong made clear its intention to sell onshore assets to fund offshore development in a new strategy and financial action plan published in February. ..."Our competences and capital will be deployed in offshore wind where we have a strong and differentiated competitive platform."