RENEWABLE ENERGY:Struggling Danish wind turbine manufacturer Vestas has warned that next year could be the toughest yet for the renewables industry as it cut a further 1,400 jobs in its fight for survival.
The world’s largest wind company by sales added to the 2,335 job cuts announced earlier this year as it lifted its cost savings target by €100 million to more than €250 million. It also downgraded its guidance for shipments for the full year from 7 gigawatts to 6.3 gigawatts but stuck to profit and revenue targets.
Vestas, which has suffered from falling public subsidies for wind power and fierce competition, last month agreed with its lenders to delay the testing of its half-year covenants.
Finance director Dag Andresen yesterday declined to say if the covenants had been breached or when they would be tested again. However he said the company had drawn on its existing debt facility more than it planned to.
“Maybe 2013 will be one of the toughest years for this kind of industry,” he said. He added that it would probably be a “lost year” in the US given the uncertainty around the renewal of subsidies.
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