Vestas Crash: Subsidy Cuts Take Wind Out Of Wind Energy

  • Date: 27/06/12

Days after scrapping plans to build a new factory in Kent, the world’s biggest wind turbine maker has swung the axe again. The wind sector is under pressure because cash-strapped governments around the world have cut back on subsidies for wind power and utilities are ordering fewer turbines.

Vestas is closing a factory in China with the loss of up to 350 jobs as it tries to shore up its battered balance sheet.

Shares in the Danish company, once the darling of the renewable energy sector, are close to an all-time low after two recent profit warnings issued in quick succession, prompting the departure of the finance director and chairman.

The sector is under pressure because cash-strapped governments around the world have cut back on subsidies for wind power and utilities are ordering fewer turbines.

Vestas has also had technical problems with some larger turbines, which has further damaged investor confidence.

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