Spanish wind turbine manufacturer Siemens Gamesa is set to close its blade factory located in Aoiz, Spain to improve its long-term competitiveness.

The factory, located primarily in Navarre, manufactures SG 3.4-132 model blades mainly for projects in the domestic market.

The closure is part of the company’s efforts to adapt to the challenging market conditions of the wind industry, characterized by strong competition and price pressures.

To increase its competitiveness in its onshore business, the company will now focus on the next generation of large turbines, with rotors of up to 170 meters, which are said to already represent almost half of the current demand.

Siemens Gamesa Onshore CEO Alfonso Faubel said: “We do not take decisions with such a grave impact lightly and over the past months we have examined carefully every option at our disposal and have reluctantly concluded there is no alternative to this action.

“In the current circumstances, we have the obligation of adopting the measures needed to secure the long-term sustainability of this company and the jobs of more than 24,000 colleagues around the world, including close to 5,000 in Spain.”

Siemens Gamesa to begin collective dismissal procedure for employees at the facility

Siemens Gamesa said that it will start a collective dismissal procedure for a maximum of 239 employees at the facility.

The firm said that the closure is not directly linked to the Covid-19 crisis, but the effects of the pandemic on the company’s operations and commercial activity have fueled the need for action.

Recently, Siemens Gamesa Renewable Energy has received a conditional order for 100 units of its new SG 14-222 DD offshore wind turbines for innogy’s 1.4 GW Sofia Offshore Wind Farm in the UK.