Vestas Reports 15% Drop In Demand As Financial Crisis Eats Away At Orders - Guardian

[hatrack]

The world's biggest wind turbine manufacturer Vestas says the current economic downturn has left it with 15% excess manufacturing capacity as demand for the technology falls short of projections. The news came as company works to restore its reputation following the discovery of fraud in its Spanish subsidiary.

Despite political impetus behind the industry, the financial crisis has cut away demand said Ditlev Engel, the Danish company's chief executive. "Six months ago everyone (in the investment community) said we were not doing enough to meet demand growing at an expected 40% this year. "Now people are saying 'Why have you put in place plans for a 40% increase in capacity when growth levels are only going to be 25%?'," he explained.

Engel would not comment on the financial impact of the slowdown, arguing the company was in a "closed period" ahead of its 2008 financial results to be published on February 11. Nor would he say whether Vestas would cut back future expenditure or jobs. But he expressed concern about discovery of fraud inside Barcelona-based Vestas E—lica.

Vestas has said that local managers cost the company around 12m euro by issuing false invoices for nonexistent services that were paid to companies fully or partially controlled by current and former employees.

EDIT

http://www.guardian.co.uk/environment/2009/jan/21/windpower-downturn

[NickB79]

1. kick. NT

[bhikkhu]

2. Another way volatility disrupts "transition technology"

Its easy to see that we will have to replace fossil fuels with alternatives, and that we really should be, as a species, getting fully in gear right now...but the article is a good example of how its not as smooth or easy as it should be.

I think the energy industry as a whole would operate more effectively if it were insulated from markets by some level of government control.