Siemens Gamesa will cease manufacturing in the US from July as the German-Spanish turbine giant announced it would “hibernate” two key wind plants in the Midwest to close a “production gap” between capacity and flagging demand.

Siemens Gamesa said it will place its Fort Madison, Iowa, blade manufacturing plant and Hutchinson, Kansas, nacelle assembly facility into “hibernation” this summer, starting with the Fort Madison plant in June followed by Hutchinson in July.

The company notified its 171-affected employees at Fort Madison and the 92 at Hutchinson last Friday, and said they will “be provided with a comprehensive separation package”.