Vestas is shuttering its nacelle assembly factory in Taranto, Italy. According to the company, 120 employees at the factory, including management, are expected to be affected.
The company says creating a leaner and more asset-light manufacturing organization is a key part of Vestas' ongoing turnaround plan, adapting to a slowdown in the wind power market in 2013 and expected slow growth in coming years.
Jean-Marc Lechene, Vestas' chief operating officer, says the company regrets closing the Italian factory, but notes the move is essential in order to keep Vestas competitive.
"This is a further step in keeping our production facilities running as close to full capacity as possible, which is necessary to support improvements in Vestas' profitability and the ability to deliver competitive products to our customers," says Jean-Marc Lechene.
Vestas has made various efforts to return to profitability, including executive shakeups. In August, Vestas announced a 26% year-over-year drop in revenue for the second quarter and ousted CEO Ditlev Engel, naming former telecom executive Anders Runevad to head the company.