The agreement will combine the two company’s experience and capability with offshore wind turbines and will transfer the development of the V164-8.0 model wind turbine, the V112 offshore order book and existing offshore service contracts along with around 300 employees to the JV. MHI will inject 100 million euros into the venture and a subsequent 200 million euros based on various milestone achievements reflecting the natural early product life cycle of the V164 turbine. Meanwhile Vestas will finalise the planned development of the V164-800 which will start the business alongside the V164. At a later date the JV will explore the possibilities of integrating the MHI hydraulic DDT technology into the 8MW platform in order to offer a product line-up that best suits customer demands.
The overall aim is to win an expanding share of the offshore wind turbine market and become a global leader in the industry. The head office of the JV will located in Aarhus, Denmark, from where the new company will handle all aspects of the business including design, further development, procurement and manufacturing related to the V164-8.0 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 new company will offer for offshore projects.
Equity ownership ratios will be 50 percent for each of MHI and Vestas with an option for MHI to change the arrangement to 51 percent for MHI and 49 percent for Vestas in April 2016. The transaction is, however, subject to customary closing conditions including approval from the relevant competition authorities in Europe and Asia. Closure is expected to take place around the end of March 2014. The main markets for offshore wind turbines will be the North Sea coastal countries, particularly the UK and Germany.
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