EMCC European Monitoring Centre on Change

Siemens Gamesa Renewable Energy

Company/Organisation:
Siemens Gamesa Renewable Energy

Geographic Location

Country: Spain
Location of affected unit(s): As Somozas and Cuenca

Company

Sector: Manufacturing
Manufacture of machinery and equipment n.e.c.
28.11 - Manufacture of engines and turbines, except aircraft, vehicle and cycle engines
Group: Siemens

Employment Effects

Announcement Date: 11-01-2021
Planned Job Reductions min: 266
Planned Job Reductions max: 266
Type of Restructuring: Closure
Employment Effect Start: 11-01-2021

Additional Information

Siemens Gamesa, the Spanish multinational company developing new technologies dedicated to wind energy, has confirmed the closure of its plants in As Somozas (Galicia) and in Cuenca (Castilla-La Mancha), affecting a maximum of 266 employees in both factories (51 in Cuenca and 215 in Galicia). Negotiations between Siemens Gamesa and the workers' representatives on the terms of the collective redundancy plan will begin shortly.

The company has pointed out that these are necessary measures to ensure the sustainability of the business and the employment. Specifically, the company stated that the closure of the Somozas factory is due to the lack of orders for the blades of the turbine model produced by the plant, while the closure of the Cuenca plant, specialised in blades' repair, depends on the impossibility to compete in a market where there is a growing trend to replace rather than repair blades. As a response, the governments of Spain, Galicia and Castilla-La Mancha have expressed their opposition to company's decision to close the plants, as they argued that this is a time of expansion of the sector in Spain.

The impact of the COVID-19 crisis has caused Siemens Gamesa to record a loss of €918 million in fiscal year 2020. This announcement of restructuring comes after the closure of the Aoiz blade factory in Navarra, which ended up affecting a total of 200 employees.