The West Branch turbine assembly plant is to lose 40 workers. Despite the recent reintroduction of the production tax credit, Acciona blamed market conditions. The Spanish company said production was unlikely to pick up until 2014.
Acciona manufactured its 1.5MW turbine at the plant. There were also signs that West Branch would build the company's latest machine, the AW3000.
The plant was built in 2007 to produce the company's 1.5 MW wind turbines at a rate of up to 400 units a year. It was Acciona's first wind manufacturing plant in the US.
Acciona received a incentive package of more than $2 million, approved by state and local economic development agencies in an effort to bring the company to West Branch.
In 2011, Acciona received a further $3 million funding from the Iowa Power Fund Board to install two 3MW test turbines. Acciona added $16 million to fund the project.
At the end of February, Acciona announced it was planning to restructure its wind business. The company's president, José Manuel Entrecanales, said government measures around the world had badly affected the renewables sector.