The new facility will be located in Fortaleza in the state of Ceara in north-eastern Brazil. It will assemble nacelles and will have an annual production capacity of 400 (800MW).
It is expected to start operating by the end of the year.
Additionally, Vestas is launching an operations and maintenance facility, which will include a training centre.
Vestas is not the only manufacturer to build a factory in Brazil. Others include Gamesa and Suzlon.
Gamesa opened its nacelle factory in July. It has a capacity of 400MW – enough to supply at least 60% of the components used by Gamesa to produce wind turbines in the country.