LM Wind Power is to start consultations over the closure of two production facilities in Denmark and is planning to “reorganise” its engineering operations in moves that could affect up to 200 posts.
The GE-owned blade manufacturer said it will offer “support and other transitional benefits” to workers as it “take(s) steps” to close the pilot and mold facilities in Lunderskov by “May 18th“.
The company stressed it is focused on negotiations with staff over the coming months.
The talks will take place in conjunction with a reorganisation of local engineering functions in Denmark, which will see some resources moved to the company’s global network of plants and focus a technology centre on new technologies.
Office locations and R&D lab facilities in the Lunderskov area will be unaffected, the company said.
“The business rationale for these measures is that it is a proactive step intended to position the company for commercial success in the longer term as market conditions evolve,” said LM.
“The wind market is changing fast with shorter and shorter product lifecycles. Fast time to market is the key to success going forward to ensure we can serve our customers’ demands.”
LM said it will move resources to plants where prototyping and then serial production takes place, which it argues is part of wider trend in the sector.
“Current price reductions and demand projections indicate that maintaining current resources in Denmark keeps adding cost while causing the business to lose global competitiveness. The company needs to take a proactive step intended to position for success in the longer term as market conditions evolve.”
Operations and sourcing vice president Bjarne Sandager Nielsen said the announcement is a “sudden” and “difficult” one for the company.
“We need to speed up the way we introduce new technologies to market by developing prototypes alongside production in manufacturing plants,” he said.
“Current price reductions and demand projections indicate that maintaining these resources in Denmark is adding cost and causing the business to lose competitiveness.”