COPENHAGEN (Reuters) -Denmark’s Vestas said on Wednesday it will restructure its factory on Britain’s Isle of Wight to manufacture blades for onshore rather than for offshore wind power, and that it would cut the number of jobs.

Through an agreement with the British government to transition to new activities, Vestas will sustain around 300 jobs at the plant, down from some 600 currently, the company said.

“In addition, Vestas will offer a significant number of opportunities in other parts of our business,” it said in a statement.

Demand for the blades being produced on the island was ending, and constraints at the site made it unsuitable for the next generation of offshore blades, the company added.

The group’s technology activities, which employ about 140 people on the island, were not affected.

Britain’s government, which has plans to decarbonise its power sector by 2030 and increase its wind power capacity, said it considers blade manufacturing as essential for what it calls its clean power mission.

“The action we are taking is designed to secure work at one of the Isle of Wight’s largest employers, and give the UK a vital new industrial capability for our clean energy future,” Ed Miliband, the country’s energy minister, said in a separate statement.

Vestas said it will begin a consultation process with employee representatives and aims to have clarity for most employees by January.

Following the transition, the plant will mainly be used to support the British market and help meet increased demand for onshore wind energy in Britain, Vestas said.

The group will still employ more than 1,500 people in Britain across onshore and offshore activities.

(Reporting by Louise Breusch Rasmussen, additional reporting by Susanna Twidale; editing by Terje Solsvik and Barbara Lewis)