After nearly two years of negotiations, Mitsubishi Heavy Industries and Vestas have agreed to form a joint venture operating in the offshore wind power sector. Vestas says that it will be well positioned to become the global leader in offshore wind following he deal. The firm disclosed 18 months ago that it was in talks with MHI.
The joint venture will combine the two companies' current capabilities in the offshore wind sector and is a sign that the Danish firm is starting to turn around its business after a period of financial uncertainty.
MHI will inject €100 million in cash into the venture and will inject a further €200 million if certain conditions are met. The deal was a year in the making, according to the Financial Times.
MHI and Vestas will focus their joint venture on the market for offshore wind turbines in the North Sea, which they believe has "robust growth potential". Vestas will finish the development of its V164-8.0 MW offshore wind turbine and will also transfer its V112 offshore unit to the joint venture.
The head office of the joint venture will be located in Aarhus, Denmark, from where the company will handle all aspects from design, further development, procurement and manufacturing related to the V164-8.0 MW turbine as well as all marketing, sales and after-sales service related to offshore wind.
Vestas says that the joint venture will have a "marginal" impact on its 2014 revenues.
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