September 26, 2019 / 2:27 PM / 19 days ago

Siemens Gamesa cuts up to 600 staff in Denmark to address 'challenging market'

FILE PHOTO: A model of a wind turbine with the Siemens Gamesa logo is displayed outside the annual general shareholders meeting in Zamudio, Spain, June 20, 2017. REUTERS/Vincent West/File Photo

COPENHAGEN (Reuters) - Wind turbine maker Siemens Gamesa (SGREN.MC) said on Thursday it will lay off up to 600 staff in Denmark as it grapples with price declines in a challenging market.

The move comes after Siemens Gamesa announced plans to focus its business on geared technology for onshore wind turbines in response to low prices across the industry as governments phase out generous subsidies.

Geared turbines use a gearbox to amplify the energy transmitted from the rotor to the generator.

“We deeply regret to have to say goodbye to good and valued colleagues,” Andreas Nauen, head of Siemens Gamesa Renewable Energy in Denmark, said in a statement.

“These difficult measures are necessary as a responsible resolution to an increasingly competitive industry landscape,” he said.

The layoffs will impact production of direct drive onshore turbines in Brande and blade production in Aalborg, the company said.

Reporting by Jacob Gronholt-Pedersen; Editing by Jan Harvey

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