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An ill wind

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Blade manufacturer LM Glasfiber is laying off more than 150 employees and temporarily shutting its Scott Hamilton facility, it announced today. Project delays thanks to the poor economy were cited.

Full press release on jump.

 

 

Regional Press Release No. 1/2009

from LM Glasfiber in North America

 

6 Jan 2009

 

LM Glasfiber adjusting capacity in Little Rock

 

LM Glasfiber, the world¹s leading manufacturer of blades for wind turbines, is adjusting its capacity in Little Rock as a result of the credit crunch now causing delays in wind projects due to more difficult financing conditions. During 2008, the company has expanded rapidly in Little Rock but is now preparing for weaker growth in the short term, and is taking needed steps to assure a strong future for LM Glasfiber in Arkansas.

 

³We remain strongly committed to our North American operations, including our new regional headquarters in Little Rock,² said Randy Fox, Vice President General Manager, North America for LM Glasfiber. ³The toughest thing is the immediate impact on some of our employees, who have been

instrumental with the launching of Little Rock¹s operations. These are

steps we truly wish we didn¹t have to take.²

 

The Scott Hamilton facility will be idled, with approximately 60 of its jobs added to the Port Site to support a planned transition to a 24/7 operation. The total number of reductions in Little Rock is estimated to be over 150, with the company still employing over 350 in Arkansas and more than 1,300 in North America. The transition will begin in approximately 60 days, Fox said.

 

Fox noted that the company¹s North American operations grew significantly in 2008. As a result of that growth, the Scott Hamilton facility, which was originally intended to be a training center, was brought online as a production plant to meet growing customer demand. But, due to the credit crunch the company now predicts lower growth rates in the short term. The reduction for volume out of the Arkansas operations does not support the need to maintain Scott Hamilton as a production facility.

 

³The credit crunch is now causing project delays in developer¹s wind projects due to more difficult financing conditions. As a natural result we must take necessary steps to keep the company on the road to a solid, sustainable future,² said Fox. ³The long-term outlook for wind is strong and the U.S. is still the world¹s number-one wind energy market. We¹re confident that the long term demand will rebound, and the difficult decisions being made today will help put us in the best position to ramp back up when it does.²

 

 

LM Glasfiber is the world¹s leading supplier of blades for wind turbines. The Group has more than 7,000 employees in nine countries, and our highly specialised R&D organisation provides us with the most comprehensive industry know-how on the development and production of rotor blades. Boasting manufacturing facilities in Denmark, Spain, the USA, Canada, India and China, LM Glasfiber is located in or close to the key geographic markets for wind energy. Additional information is available at our website:

 

 

 

www.lmglasfiber.com.

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