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Vattenfall plans to cut €200m in costs by 2020

CTBR Staff Writer Published 07 September 2017

Swedish energy company Vattenfall is going to cut costs by up to SEK2bn (€209m) and undisclosed number of jobs in order to increase its efficiency and to stay competitive.

The company aims to achieve the cost reduction target by 2020, amid a a rapidly changing energy landscape.  

It noted that it has identified a need to improve the efficiency of its staff and support services.  

Vattenfall president and CEO Magnus Hall said: “Vattenfall has a clear strategic direction and a path for transformation in which we include needed cost reductions to free up capital for future investments.

“A slim and cost efficient organization is a prerequisite for profitable growth in the company. Therefore, this kind of initiative is a continuing part of our strategic objective to secure high-performing operations.”

Vattenfall also stated that the savings initiatives so far undertaken by the company have been limited to monetary terms. However, in the latest step, the company said that a reduction in workforce is likely to be an essential part of the solution.

In this June, Vattenfall announced its plans to lay off up to 250 jobs at its pumped hydro power stations in Germany. The plan is set to be implemented in 2019. It will also see a reduction in the capacity from 2.8GW to 2.5GW.

Affected hydropower plants in Germany will include PSW Goldisthal (Thuringia) 1.060 MW, PSW Markersbach (Saxony) 1.050 MW, PS Hohenwarte II (Thuringia) 320 MW, PS Hohenwarte I (Thuringia) 63 MW, PSW Niederwartha (Saxony) 40 MW, PSW Geesthacht (Schleswig-Holstein) 120 MW, PSW Bleiloch (Thuringia) 80 MW, PSW Wendefurth (Saxony-Anhalt) 80 MW.