According to Vestas, the plant will build nacelles for V164 prototypes. It will be located at Lindø, near the city of Odense, southern Denmark, and will be developed from January 2012.
Shortly after Vestas launched the V164 it signed a memorandum of understanding to manufacture the turbines at the port of Sheerness on the southeast coast of England. The company said the Lindø plant would not affect its plans for Sheerness.
Lindø was chosen as none of Vestas' existing facilities would have been suitable for the V164's nacelle. It also needed nearby harbour facilities capable of handling the 400-tonne nacelle and a location near to Vestas' existing plants.
Last month, Vestas and Dong Energy signed a cooperation agreement to test the V164 at the latter's Østerild test facility.
Søren Husted, President of Vestas Nacelles said: "The agreement with Lindø provides us with some opportunities in relation to geographical location, material and facilities that we would not have been able to find at any of our existing or former Vestas facilities in Denmark.
"The V164-7.0MW nacelle will measure 12x24x7.5 metres and weighs in at almost 400 tonnes, so it goes without saying that we are looking at something much bigger than what we have ever made before. At Lindø they are used to materials of this size, so it was an obvious choice to place our prototype and pre-series assembly there."