Wind turbine component suppliers pressured to cut prices

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Previous suppliers to Vestas and NEG Micon -- the two Danish wind turbine manufacturers now merged under the Vestas name -- are under pressure. Whereas previously suppliers contracted with one or other company, they are now competing for orders from just one customer. Steffen Steffensen of Jupiter Group, speaking recently at the Copenhagen Business School, said that his company, a long-time supplier of nacelles to Vestas, had received a demand from the new Vestas to drop its prices by 21%. Jupiter declined -- and lost the contract. Meanwhile, another Danish supplier has closed its doors. Vego Svejseindustri had up to 70 workers producing towers for Vestas, work the company is now undertaking at its own factory in Svendborg, southern Denmark, formerly owned by NEG Micon. Vego's owner, Godtfred Lauritsen, is attempting to sell his expertise and equipment to foreign manufacturers.

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