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Siemens Gamesa to Shut Down Factory in Aoiz in Navarre

Power News - Published on Thu, 02 Jul 2020

Image Source: Siemens Gamesa Aoiz
Siemens Gamesa needs to adapt to the challenging market conditions of the wind industry, characterized by strong competition and price pressures that have deteriorated the margins of wind turbine manufacturers. To succeed in that environment and increase the competitiveness of its onshore business, the company will focus on the next generation of large turbines, with rotors of up to 170 meters. These models already represent almost half of the current demand and are crucial to increase its profitability and bring further down the cost of clean energy.

To successfully advance that strategy, Siemens Gamesa has decided to shut down its Aoiz factory, which is not competitive in the market environment to produce blades for large turbine models. The Navarre plant manufactures the SG 3.4-132 for projects located primarily in Spain. Its higher costs and geographical position, more than 200 km away from the closest port, make it uncompetitive for global markets.

The company will start a collective dismissal procedure for a maximum of 239 employees. Negotiations with local workers council are intended to start in the coming days, in accordance with applicable rules and regulations. Information on the final agreements will be communicated once negotiations are completed.

While this activity is not directly linked to the COVID-19 crisis, the effects of the pandemic in Siemens Gamesa operations and commercial activity have accentuated the need for action. The company reported a direct impact of 56 million euros in its profitability during the last quarter.

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Posted By : Yogender Pancholi on Thu, 02 Jul 2020
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