Vestas have announced an increase in the expected fixed cost reduction to €250m from the earlier stated €150m. This is based on a forecasted shipment of around 5GW in 2013 which will result in a lower activity level in 2013 to which the company will naturally have to adapt.
The company had previously announced that the the workforce would be reduced by 2,335 by the end of 2012, Vestas say the reductions are ahead of schedule and to reach that number a further 1,100 employees will be made redundant by the end of September 2012. Further employees will then be made redundant before the end of the year bringing the total number of employees down to around 19.000 by the end of 2012.
CEO Ditlev Engel says Vestas is intensifying earlier cost reduction plans in order to prepare for a “challenging” 2013.
The further reduction in the workforce is part of the continued cost saving plans which Vestas has been working on since November 2011, it is always unfortunate to have to say goodbye to good colleagues in Vestas, but we have said before that 2012 will be tough and 2013 will be even tougher for Vestas, and in order to reach our target of making 2013 profitable, it is unfortunately a necessity.
It is expected that around 55% of the reductions will happen in Europe, the Middle East and Africa, around 25% in Asia Pacific and around 20% in the Americas. Details about the exact split on market level will be communicated as soon as negotiations with the unions have been finalised.[raw]
Vestas Wind Systems A/S Vestas Wind Systems A/SHead Office Hedeager 44 Aarhus N, 8200 Denmarkwork Phone: +45 97 30 00 00work Fax: +45 97 30 00 01workfax Email: firstname.lastname@example.orgINTERNET
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Vestas Wind Systems A/S is a Denmark-based company active within the wind power industry. The Company’s scope of activities includes wind project planning, procurement, construction, operation and service, and power plant optimisation services. The Company’s product portfolio comprises a range of onshore and offshore turbines suited to specific conditions and requirements, and Supervisory Control And Data Acquisition (SCADA), VestasOnline, a system for operating and managing wind power plants. During the fiscal year ended December 31, 2010, Vestas produced and shipped 2,025 wind turbines with an aggregate capacity of 4,057 Megawatt (MW). Vestas Wind Systems A/S operates globally through a network of subsidiaries.