MHI-Vestas JV formally operational

DENMARK: MHI Vestas Offshore, the joint venture between Mitsubishi Heavy Industries and Vestas, is now formally operational.

The MHI Vestas turbine dispaying the new branding

According to Vestas, both parties have transferred 380 employees to the new company, which will handle marketing, sales and after-sales service. It will also be responsible for the development of the V164 8MW turbine.

The new company will be based in Aarhus the location of Vestas' head office. However, the JV will be in a separate building.

The management team has also been confirmed with Torben Hvid Larsen confirmed as chief technical officer, Takao Arai as chief financial officer, Flemming Ougaard as chief operations officer, and Masahide Umaya as deputy chief technical officer.

Additionally, CEO Jens Tommerup is joined by 'co-CEO' Jin Kato.

Speaking to Windpower Monthly, MHI Vestas CEO Jens Tommerup said the JV's experience in technology, safety, offshore knowledge and financial backing meant it could become a major participant in the market.

Explaining the make-up of the board and the appointment of Kato, he said: "This is not an unusual arrangement in a JV. It will work well. There's only one CEO, but we are built on a structure where we have a chairman from MHI, a CEO from Vestas, and a co-CEO from MHI."

MHI Vestas has no immediate plans to follow Siemens and commit to building a plant in the UK. Tommerup said: "We are looking into options but it's too early. But we are aware local content is important in some markets."

Vestas said the joint venture would have a "marginal" impact on its 2014 revenues. There will be a decrease in assets of EUR 350 million, as the V164 and the offshore order book have been transferred to the new company.

There will also be a decrease in liabilities of EUR 203 million.

Vestas and MHI finalised their joint offshore venture in September, a year after talks between the two were announced by the Danish manufacturer.

The deal will see MHI invest EUR 300 million, with EUR 100 million up front and the remainder dependent onn the V164 hitting certain milestones.

In return, Vestas will make the V164-8.0 MW, its V112-3.3MW offshore order book, existing offshore service contracts and around 300 employees part of the joint venture.