Mitsubishi Heavy Industries (MHI) will contribute $135m as part of a joint venture with Vestas to manufacture wind turbines at the Danish wind groups Aarhus base.

After 18 months of negotiations, MHI has agreed to come in and provide an extra $270m subject to conditions being met. The venture will have Vestas chief executive Jens Tommerup heading the venture.

Vestas
A 50-50 venture, MHI will have the opportunity in 2016 to increase its stake to 51 per cent.

Vestas has gradually recovered from difficulties experienced over the last few years and has won a number of large orders, including one from the US this week. Its shares have almost quadrupled this year, but are still down 80 per cent compared with their 2008 peak.

Vestas will transfer to the joint venture the development of the V164, its order book, existing offshore service contracts and 300 workers. The joint venture will start with Vestas’s turbines alone but will later explore the possibility of adding Mitsubishi technology.

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