Vestas and Mitsubishi Heavy Industries form a Joint Venture dedicated to Offshore Wind Energy

27 September 2013

The joint venture will combine Vestas’ and Mitsubishi Heavy Industries’ (MHI) current capabilities within offshore wind turbines. Vestas will transfer the development of the V164-8.0 MW, the V112 offshore order book, existing offshore service contracts and approx. 300 employees to the joint venture. MHI will inject EUR 100 million in cash into the joint venture and will inject another EUR 200 million based on certain milestone achievements reflecting the natural early product life cycle of the V164 turbine.

As part of the joint venture it has been agreed between the parties that Vestas is contracted to finalise the planned development of the V164-8.0 MW. In addition, Vestas and MHI will provide various services to the joint venture. The joint venture will start its business with the current V112 offshore and the V164-8.0 MW turbines, and at a later stage explore the possibilities of integrating the MHI hydraulic DDT technology into the 8 MW platform, which would make the joint venture positioned to offer a product line-up variety that best suits customer demands.

Benefitting from significant synergies

Leveraging on the respective strengths of each organisation, the joint venture will be well-positioned to win an expanding share of the offshore wind turbine market and become a global leader in this attractive and high-growth market; with Vestas’ comprehensive technological capabilities and long-standing track record within the overall wind power market, and the offshore wind segment specifically, and MHI’s strong and long-standing presence in global power markets and related technologies, the joint venture will benefit from significant synergies.

The head office of the joint venture will be located in Aarhus, Denmark, from where the company will handle all aspects from design, further development, procurement and manufacturing related to the V164-8.0 MW turbine as well as all marketing, sales and after-sales service related to offshore wind. Vestas will continue to manufacture and supply the V112 turbines which the jount venture will offer for offshore projects.

Source: Vestas

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