Bloomberg News

Vestas May Sell 375 Wind-Turbine Towers a Year in American Deal

January 17, 2013

Vestas Wind Systems A/S (VWS), the world’s biggest maker of wind turbines, may sell as many as 375 turbine towers a year under a deal with a rival manufacturer.

Vestas will use as much as 25 percent of capacity at its factory in Pueblo, Colorado, for the order. The site can produce almost 1,500 towers a year, Chief Operating Officer Jean-Marc Lechene said today, declining to confirm the 375 calculation.

Vestas is branching into tower manufacturing for external customers to boost revenue after overcapacity among turbine producers wiped out profit at the Danish company. Vestas and its competitors have cut jobs and withdrawn from weaker markets to reduce costs as wind-industry growth slows.

The tower agreement, announced yesterday, marks the first time Aarhus-based Vestas has sold the support structures to a competitor. The deal is with a single client, an American manufacturer with multiple projects, Lechene said today by telephone, declining to identify the client or disclose financial terms. Vestas has also secured smaller deals for metal-cast components with non-wind customers, he said.

“This is not at all part of our core plan,” Lechene said. “It’s additional business which is the cherry on the cake.”

To contact the reporter on this story: Alex Morales in London at amorales2@bloomberg.net

To contact the editor responsible for this story: Reed Landberg at landberg@bloomberg.net


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