Siemen’s Gamesa Pushes for Profitability, Closes 2 Plants in Spain

Siemens Gamesa, the Spanish-German wind turbine manufacturer that is among the global top 3 in the sector, has shuttered two of its plants in Spain following lack of orders from the Spanish market for the blades it manufactures at these plants.

The closures, which will lead to the loss of 266 jobs, have followed months of protests, and finally, strike action.

The blade factory in Somozas and a blade repair plant in Cuenca are the two plants involved. The closures have been blamed too on the changing dynamics of the Wind power market  with a shift towards larger capacity turbines and blades.

Siemens Gamesa claims that larger blades could not be produced at the plants closed  due to higher costs relative to other factories, as well as site and logistics constraints.

It also stated that logistics constraints at Cuenca prevent the plant from being used to repair larger blades.

Siemens Gamesa hopes that this move will help it improve its competitiveness and maintain profitability in onshore wind. Earlier, in June last year, it had also closed its plant in  Aoiz, Navarre, northern Spain cutting 239 jobs. Layoffs were also made at a fourth nacelle plant in Spain.

The pressure on jobs and plants follows a tough 2020, where, despite crossing the 100 GW milestone for installations (85:15 between Onshore and Offshore), and a strong order book of over Euro 25 billion, the firm faced pressures on profitability.

Interestingly, the firm has a plant in India too, which is considered among its more efficient plants worldwide, and exports equipment too for other markets. Its  R&D impulse in India New engineering center supports global R&D in Bengaluru employs over 700 people, and it is one of Siemens Gamesa’s major R&D hubs alongside Spain and Denmark.

In 2020  Siemens AG acquired Iberdrola’s 8% stake in the company and reiterated its intention to transfer its enlarged 67% holding to the new Siemens Energy company.