1:29pm

Wed August 21, 2013
Business

Vestas Changes CEO, Decides To Keep Pueblo Plant

Danish wind turbine maker Vestas Wind Systems has ousted its CEO after posting worse than expected loses this past quarter.

There’s good news for Colorado though, the company has decided not to sell its tower plant in Pueblo as originally planned.

While Vestas continues to see lower than expected profits, spokeswoman Susan Innis says the company is projecting an increase in U.S. sales. “Since the federal tax credits were extended back in January, Vestas has seen a much higher activity level and interest in customers for our wind turbines here in the U.S. market, “ said Innis.

That projected increase changed Vestas’ mind on the Pueblo plant. “With our U.S. facilities, we’re able to compete well in the U.S. market and have low transportation cost for our customers,” said Innis.

Despite the shake up at the top, Innis says Vestas remains committed to the North American market and keeping its factories in Colorado – including facilities in Brighton and Windsor. She says the company is part way through its two year turn-around plan announced in 2011 and will continue to increase jobs as the market demands.

The Denver Post reports the company has just over four months to complete the turn-around:

Vestas, after eight quarters of losses, has just over four months to complete its program seeking to lower fixed costs by 400 million euros ($535 million), including a 30 percent cut in its staff to 16,000. The company lost 62 million euros in the second quarter, compared with the average estimate for a 9 million-euro loss among six analysts surveyed by Bloomberg.

It reported an 8 million-euro loss a year earlier.

A press release issued by Vestas regarding its second quarter earnings can be found here.