September 27 (Renewables Now) - Siemens Gamesa Renewable Energy SA (BME:SGRE) will reduce by up to 600 its workforce in Denmark after the challenging market conditions there led to a drop in prices.
The wind turbine maker's move was announced by Reuters on Thursday, which cited the company as saying it was a result of the “increasingly competitive industry landscape.”
The plan will impact the production of direct drive onshore turbines in Brande and blade production in Aalborg. Other media reports state that while onshore wind direct drive technology at Brande will cease at end-2020, onshore blade production in Aalborg will be shut down at end-2019. Offshore blade production in Aalborg, meanwhile, along with development, prototyping and testing of new offshore blades, will continue. Nevertheless, recent offshore project delays in Denmark will cause some temporary load reduction at the site.
Siemens Gamesa has explained the changes were needed in order to strengthen its product portfolio and improve its competitiveness. They come after the wind turbine maker decided to focus its activities on geared technology for the onshore wind sector and will discontinue direct drive wind turbine production.