Vestas raises £700m a day after cutting 600 UK jobs

Vestas, the world’s biggest maker of wind turbines, has raised 5.98 billion Danish crowns (£700m) in a new share issue - a day after cutting 600 jobs in the UK.

By Telegraph StaffLast Updated: 8:35AM BST 29 Apr 2009

The fund raising follows its announcement that it was cutting 1,900 jobs, maining in Denmark and Britain, because of sluggish demand in northern Europe, despite reporting a 70pc rise in first-quarter profits to €56m (£50m).
The layoffs represent about 9pc of Vestas’ global work force of 21,000 and will lead to the closure of its UK turbine plant on the Isle of Wight.

Vestas said in a statement on Wednesday that it had raised the £700m via the placing of 18.5m new shares at 323 Danish crowns a share with institutions.
The fund raising was announced alongside the jobs cuts on Tuesday.
Commitments by European governments, including the UK and Germany, to increase the amount of electricity generated by green energy alternatives has not translated into increased demand, the company said.