Vestas begins layoffs

Aug 14 - McClatchy-Tribune Regional News - Dennis Darrow The Pueblo Chieftain, Colo.

Vestas on Monday confirmed an undisclosed number of workers at its Pueblo tower plant received layoff notices as the wind turbine maker began a pullback due to slumping U.S. orders.

The company declined to give a specific number of job cuts but outside observers estimated the layoffs could affect about 90 of the plant's 450 workers, based on a brief written statement issued by Vestas.

In the statement, Vestas said the "workforce reduction in the tower factory represents approximately 3 percent of Vestas' total workforce in the U.S. and Canada," estimated to be around 3,000 workers.

Elsewhere in the statement, Vestas tied the layoffs directly to the failure of Congress to extend a wind energy tax credit set to expire this year.

"Uncertainty over whether Congress will extend the Production Tax Credit is leading to a general market slowdown," Vestas spokesman Andrew Longeteig said in the statement.

The statement did not address any possible layoffs at the company's other plants in Northern Colorado or whether additional layoffs could take place at the Pueblo plant in the future.

The plant in Pueblo, along with other Vestas plants in Colorado, also serves markets in Canada, Mexico, Central America and South America.

Next week, Denmarkbased Vestas is expected to release its second quarter financial report as well as provide more details about its overall staffing plans for its Colorado plants.

Jack Rink, chief executive of the Pueblo Economic Development Corp., said the loss of any Vestas jobs comes as a major disappointment to Pueblo.

"Vestas has been such a great company both for the economy of Pueblo but also as a member of the community," Rink said.

"We're very hopeful and optimistic that when the tax credit and the industry comes back Vestas will be able to get back to its current level of employment and to go beyond that."

U.S. Sen. Mark Udall, DEldorado Springs, who has been pushing Congress to extend the tax credit, called the layoffs "disconcerting."

"Vestas' announcement . . . shows the real-life effect of Congress' refusal to pass the wind PTC as soon as possible," Udall said in a statement.

U.S. Sen. Michael Bennet said Colorado's economy is paying the price for Congress putting off a vote on the tax credit.

"Extending the wind PTC must be a top priority," he said.

ddarrow@chieftain.com