LUSA 01/11/2025

Lusa - Business News - Portugal: Siemens Energy to lay off 222 from wind blade plant in Aveiro district

Vagos, Aveiro, Portugal, Jan. 10, 2025 (Lusa) - Siemens Energy on Friday justified the collective dismissal of 222 workers from its wind blade factory in Vagos, in the district of Aveiro, with the reduction of the work plan from February.

In a written response sent to the Lusa news agency, an official Siemens Energy source said that the company "is implementing comprehensive restructuring measures with the aim of making a return to profitability" and that, as part of this, it will have to adapt its production capacity to the halt in sales of its 4.X and 5.X onshore turbines.

"This applies to our plant in Vagos, Portugal, where our current work plan foresees a significant reduction from February 2025. That's why we have to cut 222 posts from the current 1,300," said Siemens Energy.

The German multinational also guaranteed that the announced restructuring will only affect the Vagos plant in Portugal and will not affect the plant located in Oliveira de Frades, in the district of Viseu, both of which are owned by its subsidiary Siemens Gamesa Renewable Energy Blades.

Questioned by Lusa about the criteria, financial and otherwise, observed in this collective redundancy in Vagos, the company said it had considered "the skills and abilities required [of its workers] for the next phase, with an emphasis on service activities (maintenance)".

However, it refused to give details of the compensation to be awarded to the workers, justifying it by the ongoing negotiations with each of its employees who will be made redundant, only revealing that it is "negotiating a package of compensation that is higher than the minimum compensation provided for in local legislation".

After the headcount reduction, the Vagos factory "will employ more than 1,000 people and will continue to be an important production facility" in the future for Siemens Energy's onshore wind tower business.

In July 2024, the Compete 2030 programme announced that the Siemens Gamesa factory in Vagos, "a leading manufacturer of wind blades", had increased its production capacity with two new assembly lines for a new range of 76 and 83 metre wind blades for large onshore wind towers.

The information, available on the programme's website, states that the "Windturbine 5.X Blades" project had the objective of "strengthening Siemens Gamesa's position in the global renewable energy market, promoting efficiency and reducing production and transport costs" and was supported with €5.2 million in public funds out of a total eligible investment of €34.9 million.

Asked about the compatibility between this public funding and the redundancies now announced and whether the investment revealed by Compete 2030 concerned a wind blade assembly line whose sales have now stopped, Siemens Energy stated that "the decision taken is in accordance with the conditions under which the funding was received", without giving any further explanation.

Also in a written response sent to Lusa, the Vagos local council expressed its concern about the redundancies at the Siemens Gamesa factory, revealing that 45 of the 222 workers made redundant live in the district.

"The Vagos local council is aware of this measure taken by the company which, according to what is already public and published, will be related to a drop in productivity over the course of 2024. We are obviously following this issue closely and with concern, while safeguarding that this is a management decision by a private entity," the municipality emphasised.

Regarding the decision by the company, which is the largest employer in the district, to make 222 workers redundant after receiving €5.2 million in public funds, the council of Vagos refused to comment.

"This is not a matter for the council to comment on, since, as you may realise, we are not the decision-making, financing or supervisory body in relation to the allocation of community funds, nor do we have or have we had any involvement in any of the phases of the aforementioned issue," it noted.

 

 

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