Vestas to close three factories

Danish wind turbine manufacturer Vestas has announced that it will close three of its factories in Europe. This mainly affects the German plant in Lauchhammer. In addition, production will cease at the sites in Viveiro, Spain and Esbjerg, Denmark. The company intends to supply its customers from the twelve other European locations in the future.

Vestas' service business plays an important role in its European footprint, which includes more than 19 GW in Germany, Spain and Denmark combined.

“Today’s fast-moving energy transition, rapid introduction of new products and recent integration of our onshore and offshore business require us to further mature and evolve our supply chain network and manufacturing footprint. While Vestas will sustain a strong footprint in Europe across manufacturing and service activities, it’s always hard to make decisions that negatively affect our good, hardworking colleagues at Vestas. I would like to emphasise that we are deeply committed to explore opportunities to relocate our colleagues, who unfortunately will be impacted by the cease of production at our factories in Lauchhammer, Viveiro and Esbjerg”, said Executive Vice President and COO Tommy Rahbek Nielsen. 

The Vestas plant in Lauchhammer, Brandenburg, has maintained production of a limited number of rotor blades for the V117 and V136 turbines since downsizing its operations two years ago and currently employs about 460 people. Vestas expects to meet future customer demand for the V117 and V136 turbines with supplies from its other plants around the world. Production at Lauchhammer is expected to be completed by the end of the year, while Vestas will explore options to relocate employees currently working on site to other Vestas sites in Germany in the areas of production and service. With more than 15 GW of turbines installed, 11 GW in operation and more than 2,500 employees as of August 2021, Vestas remains committed to the German market and its established supply chain.     

The Vestas plant in Viveiro, Spain, employs around 115 people who manufacture generators for the 2 MW onshore platform and switchboards for the V164 offshore turbine for markets outside Spain. Due to the decline in demand for the 2 MW platform and the need to optimise offshore manufacturing, it is no longer viable to continue operations in Viveiro.

Vestas' factory in Esbjerg, Denmark, employs about 75 people who manufacture energy conversion modules for the V164 and V174 offshore turbines. As demand for these modules will gradually shift to markets outside Europe and be supplied through more local production facilities, Vestas expects to cease production of power conversion modules in Esbjerg in the first half of 2022.