Vestas Wind Systems (OMX: VWS) has managed to find a taker for its towers factory in Varde, Denmark. Chinese Titan Wind Energy (Suzhou) Co., Ltd will be taking over the operations in a transaction that maintains most of the 120 jobs in Denmark. Titan Wind is a large wind turbine tower manufacturer and it has a long-standing business relationship as a supplier to Vestas. This agreement allows it to establish European production for both onshore and offshore wind turbine towers. Vestas meanwhile cuts its fixed costs and gets rid of a factory that would have otherwise gone under the hammer as it focuses on turbine making.
The companies see much potential for further cooperation and the Chinese side views Europe as the most promising region for offshore wind energy development. The official MoU signing will coincide with the visit of Hu Jintao in Denmark. The deal still needs to be officially approved by the Chinese authorities. That is expected to happen soon. Vestas’ share has been battling with 30 DKK level as of late, which is another multi-year low and is currently trading just below that.
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