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Siemens Wind Power to close Canadian wind blade manufacturing plant

CTBR Staff Writer Published 19 July 2017

Siemens Wind Power has announced the closure of a wind blade manufacturing plant in the Canadian province of Ontario by early 2018.

The move will impact 340 employees, stated the company which is a part of Siemens Gamesa Renewable Energy.

Siemens Wind Power says that the decision was due to the significant changes in the global and regional markets coupled with the physical limitations at the existing plant at Tillsonburg.

According to the company, 206 employees will lose their jobs with immediate effect while the remaining roles being phased out throughout the year.

Siemens Wind Power added that it was driven towards the decision following a reduction of more than 66% in prices of wind blades in the last seven years caused by the increasing competition in the global market.

Siemens Gamesa Business in Canada head David Hickey said: "This was a very difficult decision that was taken only after assessing all the options.

"We have a great team of employees at the plant who have produced quality work for the last six years, and we sincerely appreciate all their efforts.

“However, the harsh reality is that, in order to remain competitive, we must constantly evaluate our global manufacturing footprint.”

The manufacturer also says that the Tillsonburg plant cannot be adapted easily to manufacture significantly larger wind blades which are in demand in the present market environment.

Siemens Wind Power stated that the significant investments that may be needed to make the wind blade manufacturing plant in line with present market requirements would end up in costs that may not be competitive in the international markets.