Wind-turbine maker Suzlon Group will idle its Pipestone, Minn., plant, putting 110 workers out of jobs, because the once-booming U.S. wind energy market has lost headway.
The layoffs, to take effect Dec. 29, were announced Monday, the same day Suzlon, the world's No. 3 wind energy company, reported a 70 percent drop in U.S. wind turbine installations for the first half of the year. It follows other industry reports of a deep downturn in the U.S. wind market.
Suzlon, headquartered in India, invested $8.5 million four years ago to open its first U.S. blade-making factory in the heart of southwestern Minnesota's wind-power alley. The company took advantage of government offers of free land and JOBZ tax breaks. Factory employment, once at 500 workers, had declined to 143 before Monday's layoff announcement.
Pipestone Mayor Laurie Ness said company officials informed the city the factory had no orders and that 33 workers would retool operations in the hope of future orders. She said the company has been developing a larger blade for a new, more powerful generation of turbines.
"We are disappointed about the challenges Suzlon is facing, but we are not giving up on their viability in the future," said Dan McElroy, commissioner of the state Department of Employment and Economic Development (DEED), which approved the subsidy deals. "We are hopeful that they will solve their problems and can rehire employees once the economy improves."
State officials said a worker dislocation team from the state agency was headed to Pipestone to tell workers about unemployment compensation benefits, job-search assistance and training programs. Most of the factory jobs paid $11 to $12 an hour, according to JOBZ disclosure forms.
Suzlon officials in Pipestone did not return repeated calls for comment, and the plant shutdown was not mentioned by corporate executives during an early morning conference call with investment analysts.
Wind loses its steam