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Danish wind turbine maker Vestas has shelved plans to open its biggest factory in Poland, the company said in an emailed statement to Reuters on Saturday, citing weaker-than-expected demand in Europe.

Vestas announced plans for a second offshore wind turbine plant in Poland last year. The factory, which was expected to create more than 1,000 jobs, would produce blades and start operations in 2026.

However, plans for the development have now been paused, “due to lower than projected demand for offshore wind in Europe,” the company said, adding that it “continues to invest in a local manufacturing footprint where the offshore wind market volume and certainty allow.”

The suspension of plans was first reported by the Financial Times.

In August, Polish President Karol Nawrocki vetoed a bill meant to ease rules for building onshore wind farms. A week later Prime Minister Donald Tusk told reporters that the country would “radically increase onshore wind capacity,” adding that the government was working on a resolution to allow more efficient wind turbines to be installed at existing wind farms.

Renewable energy production has been increasing in Poland at the expense of coal-fired power, though the latter still dominates the mix. In 2024, nearly 30% of Polish electricity was generated from renewable sources.