MHI decides against taking JV ownership

DENMARK/JAPAN: Mitsubishi Heavy Industries (MHI) will not take up the option of acquiring a majority stake in their offshore joint venture with Vestas.

MHI Vestas' V164 8MW turbine in Maade, Denmark
MHI Vestas' V164 8MW turbine in Maade, Denmark

When the MHI Vestas joint venture was formed in 2014, included was the option for MHI to take 51% of the business. It will instead remain 50-50.

"We believe that unchanged ownership shares is the best way to support the further development of the joint venture while showing the strong partnership and equal contribution from the two parent companies to the market," said MHI energy and environment CEO Michisuke Nayama.

In a recent interview, MHI Vestas CEO Jens Tommerup told Windpower Monthly the two parent companies were fully committed to the joint venture, which had reached all the milestones put in place in 2014.

"We have spent these two years positioning ourselves in the market, we have established the brand, we have fulfilled the milestones when the JV was established.

"They were commercial and technical and they are today fulfilled so we are fully capitalised, ready to grow in the offshore market," Tommerup said.

The joint venture has installed 600MW of turbines from Vestas' 3MW platform at offshore projects in Europe and will begin installing its flagship V164 8MW turbine at the UK's 258MW Burbo Bank Extension for Dong Energy this summer.

Tommerup also said last month the company is starting to look to the US and Asia for further growth as the European offshore market slows.

Vestas CEO Anders Runevad said: "We have said from the beginning that the exact ownership structure has no real impact on the day-to-day running of the business, and that remains the case with MHI's decision."

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