Vesta Wind Systems A/S, the Danish manufacturer of equipment for wind power production, announced yesterday that it was to set up a subsidiary, Vestas – Celtic Wind Technology Ltd., with production facilities in Scotland.

With the UK government intending to meet much of its renewable energy production target through the use of wind power, Vesta intends to expand its UK business in line with this. The factory will be located near Campbeltown on Kintyre, on the west cost of Scotland at a cost of £9.5 million. It is due to be operational during the first quarter of 2002.

The 10 000 m2 factory will assemble wind turbines and carry out production of steel towers. It is expected to create initially 100 jobs in an area with high unemployment after closure of the Machrihanish Air Force base and the local shipyard.

The buildings will be leased from Highlands & Islands Enterprise, a local entity promoting economic development in less favoured regions. Vestas’ investment in production equipment will amount to approximately £2.8.

“After almost two years of planning, we are extremely pleased that this project is now progressing. It will provide an excellent platform for servicing clients in the rapidly expanding markets on the British Islands,” said Mr. Tom K. Pedersen, Managing Director of Vestas, who is responsible for the project.

Vesta has worked with UK utility Scottish Power plc in the planning of the proposed facility. Scottish Power is committed to expanding its wind farm production in the region from 100 MW to 500 MW.