Published on September 27th, 2013 | by Anneli Hidalgo0
Vestas and Mitsubishi in offshore collaboration
Vestas and Mitsubishi Heavy Industries have announced the formation of a joint venture within offshore wind energy.
The joint venture (JV) will combine Vestas’ and Mitsubishi Heavy Industries 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. will inject EUR 100m in cash into the JV and will inject another EUR 200m based on certain milestone achievements reflecting the natural early product life cycle of the V164 turbine. Under the agreement, Vestas is contracted by the JV to finalise the planned development of the V164-8.0 MW on behalf of the JV.
Furthermore, the head office of the JV 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 JV will offer for offshore projects.
Equity ownership ratios will be 50 per cent for each of MHI and Vestas with an option for MHI to change the ownership ratio to 51 per cent for MHI and 49 per cent for Vestas in April 2016. The transaction is subject to customary closing conditions including approval from relevant competition authorities in Europe and Asia and closing is expected to take place around the end of March 2014.