SIEMENS Gamesa
Press Release
Oakville, Ontario, July 18, 2017
Siemens Gamesa Renewable Energy announces closure of
Tillsonburg, ON blade manufacturing plant
- Manufacturing plant in Tillsonburg, ON will be closed by early 2018
~ Global wind market undergoing dramatic changes, presenting increased competition
and cost pressures
~ Total of 340 employees are affected by closure; 206 with immediate effect with the
remaining positions being phased out throughout 2017
‘Siemens Wind Power Limited, as part of Siemens Gamesa Renewable Energy, today
regretfully announced the closure of the wind blade manufacturing plant in Tillsonburg,
Ontario. The closure will affect 340 employees, and will be conducted in phases through the
rest of the calendar year.
“This was a very difficult decision that was taken only after assessing all the options,” said
David Hickey, Head of the Siemens Gamesa Business in Canada. "We have a great team of
‘employees af'the plant who have produced quality work for the last six years, and we
sincerely appreciate all their efforts. However, the harsh reality is that, in order to remain
competitive, we must constantly evaluate our global manufacturing footprint. *
The decision to close the plant comes as a result of significant changes in the global and
regional markets, combined with physical limitations at the existing plant
* The global market has become increasingly competitive—driving a reduction in prices
of more than 66% in the last seven years.
+ Today's market environment requires significantly larger blades, a critical requirement
for our business to remain globally competitive. The Tillsonburg factory cannot easily
be adapted to manufacture this product portfolio. The significant investments
‘Siemens Gamesa Renewable Energy 1577 North Service
‘Siemens Wind Power Limited Road East
Oakville, Ontario
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necessary to bring the plant in line with current market requirements would result in
costs that could not be competitive in the global markets.
* The market in Eastern Canada has experienced a significant reduction in the demand
for blades in the last year.
‘+ The export market into the U.S. has been delayed due to a combination of factors,
including uncertainty around the U.S. tax policy
“Our focus at this point is on the employees affected by this announcement,” said Hickey. “In
addition to their severance packages, we will be providing all affected employees with career
Counseling, job-placement assistance—including resume preparation—and redeployment
where possible.”
The plant began commercial operation in 2011 to provide wind blades for projects in Ontario
and beyond. Since then, the plant has produced more than 2,500 blades and ‘supported
Projects in Ontario & Quebec, Canada; U.S.; U.K.; and Sweden
Siemens Wind Power Limited, as part of Siemens Gamesa Renewable Energy, continues to
be dedicated to the renewable energy industry in Canada. With 160 highly-skilled employees
remaining, the company remains focused on supporting new wind opportunities—such as the
upcoming 600 MW procurement in Alberta and Saskatchewan—and providing quality service
and supporto existing customers at more than 30 wind projects across the country.
Contacts for journalists
‘Andrew Luther
Siemens Wind Power Limited
Phone: 416.509.4834
andrew. luther@siemens.com
Further information is available at:
www.gamesacorp.com/siemensgamesa
Follow us on Twitter at: twitter.com/SiemensGamesaSIEMENS Gamesa
About Siemens Gamesa Renewable Energy
With a worldwide installed capacity of 75 GW, Siemens Gamesa Renewable Energy has a presence in
more than 90 countries and a team of 27,000 employees worldwide. Its end-to-end value chain
presence encompasses onshore and offshore wind turbine design, manufacturing, installation as well
as cutting-edge service solutions. The global headquarters and legal domicile of the company is.
located in Zamudio, Spain, The company is listed on the Spanish stock exchange.