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Suzlon closes rotor blade unit in India

Wind power major Suzlon Energy has decided to close its rotor blade and control panel manufacturing units at the Puducherry (formerly Pondicherry) manufacturing facility

Multi-MW wind turbine components of increasing size are a costly undertaking for many wind turbine manufacturers

Leading wind power solutions provider, Suzlon Energy will close its rotor blade and control panel manufacturing units in a union territory of south India. The move follows a number of industrial relations and logistical problems associated with handling multi-MW turbine components.

Challenges on the industrial relations front coupled with logistical issues faced by the facility in handling multi-MW wind turbine components of increasing size and the current financial position of the company, prompted the decision, according to local reports.

The announcement came before stock of Suzlon Energy crashing on Friday to 9.6 per cent. The company posted a consolidated net loss of Rs 1,154.53 crore for the quarter ended 31 December 2012. The net loss increased four-fold as compared to net loss of Rs 2,86.46 reported during the corresponding quarter last year.

In early deals, the stock tumbled to a low of Rs 19.75. The consolidated total income dropped about 20 per cent to Rs 4,074.1 crore from Rs 5,063.41 crore during the same period.

According to market participants, the numbers were below market expectations. Suzlon posted a consolidated forex loss of Rs 47 crore during the quarter as against loss of Rs 34.3 crore in the corresponding quarter of the last fiscal.