The wind-turbine manufacturer whose decision to cease UK production sparked an 18-day factory occupation by protesting workers has posted a 29% rise in half-year revenue.
Vestas Wind Systems yesterday reported revenue of £1.98billion for the first six months of the year, although profits were flat in the period.
The Danish firm shed 425 employees at its sites in the Isle of Wight and Southampton earlier this month citing insufficient UK demand as planning hurdles hampered wind projects.
It said margins were squeezed in the second quarter because of severance payments relating to redundancies in northern Europe following lower activity and an increase in staff in its growing American and Chinese markets.
Even after capacity reductions in the UK and Denmark – 1,142 employees were laid off – Vestas still has excess capacity in northern Europe.
It said: “In spite of growing global demand for renewable energy, the lack of growth in demand in certain markets in northern Europe made these measures an unfortunate necessity.”
While Europe still accounts for 72% of the company’s order backlog, with the Americas and Asia at 17% and 11% respectively, Vestas said it expected a more even distribution across the markets in the future.
It added: “Vestas is making a dedicated effort to keeping wind power at the top of the global energy agenda, as modern energy is presently the best solution to the climate and energy challenges and also creates thousands of local jobs in the short term.
“However, a key prerequisite is having long-term, stable national schemes that provide the industry with the necessary opportunities to plan and invest in employees, technology and production facilities.”
Earlier this month, Vestas announced the closure of its UK blade-production factories after obtaining a court order to remove six workers who had barricaded themselves into the plant on the outskirts of Newport, in the Isle of Wight.
The firm had previously used the sites to produce turbines for the US market and had intended to switch to manufacturing for the UK as it looked to invest in more production facilities in North America.
Pre-tax profits for the second quarter were down 34% on last year at £50.6million but the half-year surplus was almost flat at £117.50million.
Vestas said the credit crisis had hit the wind industry hard, particularly because many customers were unable to finance their projects.
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