First Solar, Vestas ex-workers to get EUR 8.6m in EU aid

Dec 10, 2013 - Former employees of First Solar (NASDAQ:FSLR) in Germany and Vestas Wind Systems A/S (CPH:VWS) in Denmark will get EUR 8.6 million (USD 11.8m) in financial aid from the European Union (EU).

In a statement today, the European Parliament said it had approved the measure, which was greenlighted by the EU Council of Ministers at the start of the month. The money will come from the European Globalisation Adjustment Fund (EGF) that has been established to help redundant workers find new jobs.

Total of 875 workers that were let go by First Solar Manufacturing GmBH in 2012 will now receive EUR 2.3 million in EGF aid in order to enhance their employability. When the German unit of US solar company First Solar shut down its plant in Frankfurt/Oder last year it made 959 people redundant. The move was the result of falling prices and a drop in solar product demand globally.

Another EUR 6.3 million will go to 611 former employees of Danish wind turbine maker Vestas. They lost their jobs as the manufacturer had to adjust its workforce to stagnating demand in the EU and reduced market share as a result of Chinese competition. Vestas has received three tranches of EGF aid already.

The EGF package that was approved today also includes EUR 9.8 million to support 3,719 former workers at Nokia Oyj (HEL:NOK1V) in Finland.

(EUR 1 = USD 1.375)

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