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Posted: 11:04 a.m. Wednesday, Nov. 14, 2012
By WJAC Web Staff and The Associated Press
EBENSBURG, Pa. —
The Spanish wind-turbine manufacturer Gamesa plans to lay off 92 workers at its Cambria Township plant by early next year, on top of 73 workers who were furloughed in September.
Gamesa officials said earlier this year they hoped the September furloughs would last only about 10 weeks or so. But now the plant is cutting 92 of its remaining 154 workers and has no immediately plans to bring back the previously furloughed workers.
Company officials said a congressional deadlock over whether to extend the American Renewable Energy Production Tax Credit, which helps wind farm developers, is driving the newest layoffs. According to The Associated Press, the tax credit expires at year's end.
In a statement, Gamesa officials said:
"Gamesa announced Tuesday, Nov. 5, that it will furlough 92 workers at its blades manufacturing plant in Ebensburg, Pa., by the end of the year or early next year, depending on market conditions. All affected employees received a 60-day notice as required by the Worker Adjustment and Retraining Notification (WARN) Act.
"The U.S. wind market remains uncertain, largely because of policy debates over the federal production tax credit (PTC). Failure to extend the PTC, which expires at the end of the year, has caused a dramatic slowdown across the entire U.S. wind industry. Gamesa remains fully committed to the U.S. market and continues to adjust production capacity to reflect current market conditions.
"In July, Gamesa announced 165 temporary furloughs at its two manufacturing plants --- 92 workers at its Fairless Hills nacelle facility and 73 others at its Ebensburg blade operation. Some of those Fairless Hills workers are scheduled to be called back soon to assemble nacelles associated with an export order. The callback affects only Fairless Hills, as the blades for this specific turbine (G97) are not made in Gamesa's U.S. factories."
Stay with 6 News, WJACTV.com and WJACTV.com Mobile for continuing coverage.
--PREVIOUS STORY (July 3, 2012) : Gamesa announces layoffs due to lower demand for windmill blades
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