Denmark-based CS Wind Offshore has announced it is contemplating the layoff of approximately 220 employees at its Odense Port facility due to recent offshore wind project cancellations and market challenges.
According to the company, several offshore wind projects are being either postponed or cancelled due to political interventions and unfavourable terms of business cases, which have impacted the entire supply chain, including CS Wind Offshore.
“Due to the current market development and cancellation of offshore wind projects, CS WIND Offshore has today announced to its employees a need to significantly reduce costs at its production facility at Odense Port. As part of this, the company unfortunately sees no other way than to significantly reduce its manning and therefore contemplates to lay off approximately 220 employees,” stated CS Wind Offshore.
A lack of new monopile orders means that the CS Wind Offshore monopile factory at Odense Port will be idle for a “substantial period of time” , leading to the need for a “significant reduction” of the workforce at the Lindø site, according to the company.
“Over the past couple of years our employees have worked very hard to get our monopile factory fully up and running. Great progress has been made, and it is highly regrettable that we now see no other option than to ramp down due to a lack of new orders,” said Knud Bjarne Hansen , CS Wind Vice Chairman.
“We sincerely regret the impact this is likely to have on good and highly competent colleagues who have dedicated their time and efforts to the company. This includes not only our own staff, but also the many sub-suppliers who are supporting our work in various ways.”
In December 2023, South Korea-based CS WIND completed the acquisition of Bladt Industries, now renamed CS WIND Offshore.
“CS Wind acquired Bladt Industries in order to expand our offshore product offering, so there is no doubt that we want to stay in the monopile business. It is also important to note that we will of course finalize delivery of the monopiles we are currently producing at Odense Port so the contemplated reduction of the workforce will take place over the coming 3-9 months,” said Hansen .
At the beginning of this year, CS Wind Offshore signed a contract with Vattenfall and BASG for the supply of transition pieces for the Nordlicht 1 and Nordlicht 2 offshore wind farms in Germany. The manufacturing of the 68 units will commence at CS Wind Offshore’s production site at Aalborg Port, Denmark, starting in 2025.
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