You are here
Vestas to take on offshore wind with US$832m deal
[COPENHAGEN] Vestas Wind Systems, the world's biggest wind turbine manufacturer, will buy out its offshore joint venture partner in an all-share deal that looks to take advantage of an expanding industry at the heart of the energy transition.
The US$832 million deal for Mitsubishi Heavy Industries' 50 per cent share in the partnership will integrate the offshore business into Vestas's much bigger onshore wind operation. It's a move that the Denmark-based manufacturer hopes will help it dominate the industry by 2025.
"Vestas is the leader in onshore wind, but to accelerate the energy transition and achieve our vision we must play a larger role in offshore," said Henrik Andersen, Vestas's chief executive officer.
The offshore wind market has become increasingly competitive as governments look to transition away from fossil fuels by, in part, installing massive turbines at sea.
The dominant Siemens Gamesa Renewable Energy is already fighting for market share from General Electric. Over the last five years, MHI Vestas Offshore Wind has had about 28 per cent of the offshore wind turbine market, compared to 54 per cent for Siemens Gamesa.
The merger of the offshore business into Vestas will help the company to optimise its current manufacturing footprint, Mr Andersen said.