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Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland) - One of Europe's largest energy companies, RWE AG (OTC:RWEOY) (Essen, Germany), is expected to cut up to half of its renewable energy workforce when it announces its Q3 financial results later this week.
Reports confirmed that around half of the 1,500 people employed by its renewable energy business, RWE Innogy, will be cut and redeployed, in an effort to reduce costs and improve profitability. The company, which is aiming to shed around 10,000 jobs from its 70,000-strong global workforce, as part of its restructuring by 2016, has complained about weak energy demand in Germany and Europe. RWE is aiming to cut its running costs by 1 billion ($1.3 billion) throughout next year.
RWE's Chief Executive, Peter Terium, has already said that he plans to cuts investments in its renewables business from 1 billion a year to around 500 million ($670 million).
RWE is among a number of energy companies that were hit hard by the country's decision to quit the nuclear power sector in 2011 after the Fukushima nuclear accident in Japan. For additional information, see May 30, 2011, article - Germany Votes to Dump Nuclear Power.
RWE and fellow German energy giant E.ON AG (PINK:EONGY) (Dusseldorf, Germany) vowed to fight the decision in the courts and are seeking billions of euro in compensation. For additional information, see June 15, 2012, article - E.ON Seeks 8 Billion from German Government. In an effort to cut costs and boost capital, the companies pulled out of the U.K. nuclear space by selling their Horizon Nuclear Power joint venture for 863 million ($1.1 billion) to Hitachi Ltd (Tokyo, Japan). For additional information, see October 31, 2012 article - RWE and E.ON Sell U.K. Nuclear Venture.
Last month, RWE Innogy and WindMW GmbH (Bremerhaven, Germany) celebrated the topping-out ceremony for two new buildings on the island of Heligoland, which will serve as the companies' offshore base of operations for a number of major offshore projects in the German North Sea. Alongside E.ON, the three companies signed agreements in May to develop the southern port of the island to support the development and long-term maintenance of three windfarms: RWE's Nordsee Ost (295 MW), E.ON's Amrumbank West (288 MW) and the Süd and Meerwind Ost (288 MW), which is being built by WindMW. For additional information, see May 4, 2013, article - Germany's Offshore Wind Island Progresses.
View Project Report - 300012972 73000178 73000120
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, three offices in North America and nine international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. To contact an office in your area, visit the Industrial Info "Contact Us" page.
Reports confirmed that around half of the 1,500 people employed by its renewable energy business, RWE Innogy, will be cut and redeployed, in an effort to reduce costs and improve profitability. The company, which is aiming to shed around 10,000 jobs from its 70,000-strong global workforce, as part of its restructuring by 2016, has complained about weak energy demand in Germany and Europe. RWE is aiming to cut its running costs by 1 billion ($1.3 billion) throughout next year.
RWE's Chief Executive, Peter Terium, has already said that he plans to cuts investments in its renewables business from 1 billion a year to around 500 million ($670 million).
RWE is among a number of energy companies that were hit hard by the country's decision to quit the nuclear power sector in 2011 after the Fukushima nuclear accident in Japan. For additional information, see May 30, 2011, article - Germany Votes to Dump Nuclear Power.
RWE and fellow German energy giant E.ON AG (PINK:EONGY) (Dusseldorf, Germany) vowed to fight the decision in the courts and are seeking billions of euro in compensation. For additional information, see June 15, 2012, article - E.ON Seeks 8 Billion from German Government. In an effort to cut costs and boost capital, the companies pulled out of the U.K. nuclear space by selling their Horizon Nuclear Power joint venture for 863 million ($1.1 billion) to Hitachi Ltd (Tokyo, Japan). For additional information, see October 31, 2012 article - RWE and E.ON Sell U.K. Nuclear Venture.
Last month, RWE Innogy and WindMW GmbH (Bremerhaven, Germany) celebrated the topping-out ceremony for two new buildings on the island of Heligoland, which will serve as the companies' offshore base of operations for a number of major offshore projects in the German North Sea. Alongside E.ON, the three companies signed agreements in May to develop the southern port of the island to support the development and long-term maintenance of three windfarms: RWE's Nordsee Ost (295 MW), E.ON's Amrumbank West (288 MW) and the Süd and Meerwind Ost (288 MW), which is being built by WindMW. For additional information, see May 4, 2013, article - Germany's Offshore Wind Island Progresses.
View Project Report - 300012972 73000178 73000120
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, three offices in North America and nine international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. To contact an office in your area, visit the Industrial Info "Contact Us" page.
