Vestas, Mitsubishi form offshore wind joint venture

|About: Vestas Wind Systems A/S ADR (VWDRY)|By:, SA News Editor

Vestas Wind Systems (VWDRY.PK) forms an offshore wind joint venture with Mitsubishi Heavy Industries (MHVYF.PK), sealing a deal that has been in the making for more than a year.

Mitsubishi is expected to provide the venture with an immediate €100M ($135M) cash injection, followed by another €200M if certain targets are met.

Vestas will transfer the development of its V164-8.0 MW turbine, its V112 turbine offshore order book, existing offshore service contracts and ~300 employees to the venture.

The deal should ease some of the fears about Vestas' financial health and ability to compete in the market for offshore wind turbines with competitors with deeper pockets such as Siemens (SI).