Vestas Wind Systems exits from six plants to complete asset disposal program

October 9
9:12 AM 2013

Danish company Vestas Wind Systems disposed of six turbine plants to VTC Partners. The factories, which are located in Norway, Sweden, Germany, China and Denmark, were sold for EUR 1 or USD 1.35. The divestment was done by Vestas to finish its asset disposal program. The program was part of the company's bid to turn their firm's performance around in the next two years. The company would no longer have assets for sale in its balance sheet after the six units would be acquired by VTC Partners.

Vestas told Bloomberg through email that the asset sale would incur a writedown of EUR 50 million on its earnings report for the third quarter.As part of the company's plans to prevent more losses from its unprofitable operations, Vestas would also be reducing its fixed costs by as much as EUR 400 million. It had plans to decrease its workforce by 16,000 employees.

Vestas CEO Jean-Marc Lechene said, "The divestment of our machining and casting units is part of the plan to improve our capacity utilization and to become a more asset-light and scalable company."

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