Vestas reorganises to increase customer focus and earnings and to reduce investments required for future growth

Summary

• Vestas will reduce its fixed costs by more than EUR 150m – with full effect as from the end of 2012 – primarily through streamlining of support functions and closing of factories to align capacity with market demand. A total of 2,335 employees are expected to be made redundant.
• The reorganisation will make Vestas an even more inclusive organisation. Executive Management is extended to six members to allow greater functional focus on all key parts of the value chain and to drive a stronger performance management.
• A Global Solution and Services unit will contribute to improving the performance of both existing and upcoming wind power plants and accelerate the development of the services and solution business.
• Manufacturing is consolidated to capture cost synergies and reduce capital required for future growth as well as to increase flexibility in case of a prolonged industry slowdown.
• In addition to the planned layoffs of 2,335 employees in the coming months, Vestas prepares for a potential slowdown in the US in case the present Production Tax Credit (PTC) is not extended. This can result in lay off of an additional 1,600 employees at plants in the US. The potential savings in this respect will be in addition to the more than EUR 150m mentioned above.

Press conference today

A press conference will be held today, 12 January 2012 at 2.00 p.m. CET, at the Radisson Blu Royal Hotel in Copenhagen, Denmark. President and CEO, Ditlev Engel, will present and explain the strategic reorganisation of Vestas. Following the presentation, it will be possible to ask questions, in plenum as well as during one-on-one interviews.
The press conference can be followed live at www.vestas.com.

Attached you will find the full wording of the company announcement and two press releases from Vestas Wind Systems A/S.