Vic: Wind farm company blames market constraints for closure

AAP General News (Australia)
08-22-2007
Vic: Wind farm company blames market constraints for closure

By Catherine Best

MELBOURNE, Aug 22 AAP - A major world supplier of wind farm technology has been forced
to turn its back on Australia because, it says, the green energy market is unviable.

Vestas Australia Wind Technology will close its Portland turbine blade factory at the
end of the year because it is not profitable.

One hundred and thirty jobs will be lost, with the closure casting major doubt over
the viability of Australia's renewable energy industry.

Vestas says it could no longer justify keeping the plant open because the investment
was not worthwhile in the Australian market.

"It's definitely a fact that the current environment for the wind industry is not big
enough to encourage these kinds of investments," Vestas Asia-Pacific senior vice-president
Jorn Hammer told AAP.

"We have the view that if the government steps up to the plate and puts the necessary
security for a long-term market in place we'll have another look at the market, but I
guess we'll be a little more careful next time.

"(Not) just believing in what they've been telling us, we need to see some hard evidence
to justify investment."

The federal government has set a two per cent renewable energy target, labelled "pathetic"

by Greenpeace which says it is not enough to encourage a green power industry.

Labor and the Australian Workers' Union (AWU) have also blamed the government for the
Vestas closure, accusing Canberra of stifling the industry.

The Danish-based company last year closed a similar $15 million factory in Tasmania,
laying off 65 staff.

The Wynyard plant, near Burnie, 345km north-west of Hobart, operated for three years,
manufacturing blade hubs and nacelle components for its wind turbines.

Mr Hammer said the plant closed for the same reason the Portland factory was shutting down.

The Portland operation opened two years ago and produces export turbine blades.

Vestas had hoped to invest in new technology to develop blades for the Australian market
but could not justify the outlay, Mr Hammer said.

The company will continue to employ about 200 people around Australia in technical
and support roles but its manufacturing operations here will cease.

Mr Hammer said the company would fulfil its employee obligations and was working with
the union to help workers find new jobs.

"It's very sad, it was not an easy decision for us, we feel very much for our employees
in Portland," he said.

AAP cmb/gfr/jm/cdh

KEYWORD: VESTAS SECOND LEAD

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