Vestas forms wind energy joint venture with Mitsubishi Heavy Industries
Vestas Wind Systems said in an announcement at a stock exchange that it would be forming a new venture with Japanese conglomerate Mitsubishi Heavy Industries. Mitsubishi Heavy is a Tokyo-based firm that specializes in electronics, electrical equipment and engineering. The Danish wind turbine producer said on Friday it would be transferring the development of its V164-8.0 MW wind turbine, existing offshore service contracts, 300 of its employees and its order book for the V112 offshore turbine.
Vestas added, "MHI will inject EUR 100m in cash into the JV and will inject another EUR 200m based on certain milestone achievements reflecting the natural early product life cycle of the V164 turbine."
The equity ownership ratios in the wind energy joint venture would be somewhat similar for each company. Vestas would have a 50% equity ownership with the option to change it to 49% in April of 2016. Mitsubishi Heavy would also have a 50% equity ownership ration with the option to change it to 51% in the same period.