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Danish turbine manufacturer Vestas sees $832 mn deal with MHI

The deal between both companies will include MHI’s acquisition of a 2.5 percent stake in Vestas

Danish wind turbine manufacturer Vestas is establishing a partnership with MHI which will see the latter acquire a 2.5 percent stake in the company. MHI will also become a board member of the company. The wind turbine manufacturer is appointing a new CEO and executive management for MHI Vestas Offshore Wind. It is reported that Johnny Thomsen will replace Philippe Kavafyan as the CEO.

The move comes at a time when the Danish company has acquired the majority of the offshore business from Mitsubishi Heavy Industries (MHI). It will now fully operate its offshore turbine joint venture, MHI Vestas. The team member for MHI includes Henrik Andersen, Chairman of MHI Vestas, Kentaro Hosomi, Deputy Chairman of MHI Vestas, Tatsuichiro Honda, Co-Chief Executive Officer and Johnny Thomsen.

The Danish company is seeking to gain a renowned global status in offshore wind by 2025 and aims to roll out next-gen technology in the future. Vestas told the media, “It would be eyeing savings and synergies in the domains of “sales, technology, manufacturing footprint and procurement to sustain customer relationships [and] lower costs. MHI Vestas’ largest turbine is currently rated at 10 MW. Its new tech would improve efficiency and drive the levelized cost of energy further down.

It is reported that global offshore wind deployment is expected to see growth on the back of expansion of the industry’s biggest markets. There is an increase in demand for new locations too, according to the trade body Renewable UK, which pointed out that the global offshore wind project pipeline has grown 50 percent this year.

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