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News in English 28. apr 2009 KL. 11.47

Vestas lays off 1,200 in Denmark

Denmark's wind turbine giant Vestas expects to lay off 1,900 employees - primarily in Denmark and the U.K.

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The economic crisis has slowed the market for wind turbines and has resulted in Vestas expecting to cut jobs.

According to Vestas CEO Ditlev Engel in an initial Q1 report, the company is expected to lay off some 1,900 employees, primarily in Denmark and the United Kingdom.

"In the autumn of 2008 Vestas introduced an employment freeze, but the credit crisis and a lack of political action has hit harder than initially expected," Vestas says.

Denmark
Most of the layoffs - 1,275 are to take place in Denmark and will primarily affect staff at Vestas Blades in Nakskov and Lem where 935 employees are to be laid off.

Layoffs will also take place in Viborg, Ringkøbing and Hammel.

Vestas says that the financial crisis and subsequent global economic recession has seriously affected order books.

"Since autumn 2008 the credit crisis has affected the industry, resulting in orders over the past six months being limited and considerably under the levels of the same period in 2007 and 2008. Many customers have been unable to finance planned projects either as a result of increased financing costs or a lack of capital," Vestas says.

Stock
Despite layoffs, and contrary to analyst forecasts, Vestas is maintaining its own forecasts for 2009. 2009 targets are an increase in turnover of 20 percent to EUR 7.2 billion.

To ensure enough funding to handle the crisis, Vestas is also expected to introduce a share increase of up to 10 percent.

Edited by Julian Isherwood

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You are currently viewing the English section of Politiken.dk. The section provides the main stories of the day from Monday to Friday and is edited by Julian Isherwood.

Politiken is one of Denmark’s largest newspapers and has been published since 1884. The newspaper is owned by the Politiken Foundation and is part of the JP/Politikens Hus publishing group. Politiken is independent of all political parties and organisations.

 
 
 
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