August 29 (Renewables Now) - Danish wind turbine maker Vestas Wind Systems A/S (CPH:VWS) will need to lay off about 90 employees at its facility in Ringkobing, Denmark, in response to the current lower market demand in Europe.
The company said that it has to scale down production of nacelles and hubs for the 4-MW turbine platform at the particular facility in a drive to sustain competitiveness.
“It’s always hard to let good, hardworking colleagues go, but with most of market growth expected to be outside of Europe, our global footprint must reflect market developments in order for us to grasp growth opportunities,” the company said in a statement.
At present, Vestas has more than 640 employees in Ringkobing, including 530 people working at the assembly factory there. The site also serves as a hub for a variety of functions such as HR, finance, transport and planning, as well as research and development (R&D).
As of August 2019, the company has over 4,300 employees in all of Denmark, while on a global basis, its headcount surpasses 24,500.
Earlier this month, Vestas narrowed its full-year revenue forecast to between EUR 11 billion (USD 12.2bn) and EUR 12.25 billion compared to the previously estimated EUR 10.75 billion-12.25 billion, the reason being an improved visibility for the remainder of the year. The guidance for EBIT margin before special items was narrowed as well, to 8%-9% from 8%-10%.
(EUR 1.0 = USD 1.107)