Vestas, the world's largest wind turbine manufacture will be closing down five production plants in Denmark and Sweden and cut 3,000 jobs to cope with the decline in demand for wind power in Europe, the company announced on Tuesday.
The Danish company will be shifting its manufacturing operations to Spain to reduce costs. Closure of the plants will cost the company between €140m and €160m.
The company's net profit for the third quarter of 2010 was €126m, down from €165m in the corresponding period in 2009.
In addition, sales went down from €1.8bn to €1.72bn.
Chief executive of Vestas Ditlev Engel said that that the growth in the European market in 2011 would not be as high as expected earlier.
On the possibility of the company resuming manufacturing in Britain, a spokesperson said, "We are always considering [other alternatives], though we don't have any current plans in the UK.".