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Landmark Vestas deal allows wind farms to pay for turbines after production starts
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Offshoring of $360 million Ryan Corner Wind Farm Contract Will Cost Jobs: Federal Government Must Act Now
Weld Australia
The jobs of 150 workers in regional south-west Victoria are under threat following the award of the wind turbine towers contract for the $360 million Ryan Corner wind farm to an overseas company.
Danish company Vestas has sent the contract for the manufacture of 52 wind towers offshore. This is despite the fact that Keppel Prince Engineering the only manufacturer of wind turbines on mainland Australia is located just 70km away from the project site. As a result, Keppel Prince will likely be forced to make 150 workers redundant. In a regional town with a population of just 10,000 people, the economic fall-out will be severe.
The Victorian government forces companies that build state-backed renewable projects to use 60 per cent local content. Keppel Prince has won contracts on Victorian projects but the Ryan Corner project, which is not a Victoria-backed initiative, does not mandate Australian-made inputs.
The next batch of Victorian Renewable Energy auction projects will likely begin later this year, meaning Keppel Prince could be forced to stay afloat with little work for the best part of a year.
A Victorian government spokeswoman said its renewable energy program had provided Keppel Prince with work in recent years and new projects this year âwill create the next wave of jobs in the manufacturing, engineering and the operation of solar and wind farmsâ.