Danish wind turbine maker Vestas Wind Systems and Japanese company Mitsubishi Heavy Industries (MHI) have agreed to form a joint venture (JV) in the field of offshore wind turbines with a base in Aarhus, Denmark.
Under the JV agreement, Vestas will move V164-8.0MW turbine development activities, the V112 offshore order book, existing offshore service contracts and around 300 employees to the JV, while MHI will put €100m in cash into the new company.
The agreement will also see MHI injecting another €200m in cash based on achievements reflecting the natural early product life cycle of the V164 turbine.
Pending approval from relevant authorities in Europe and Asia, the agreement stipulates each company holding 50% equity in the JV initially and provides an option for MHI to own 51% in April 2016.
With these significant synergies, the JV will begin its business with the current V112 offshore and the V164-8.0 MW turbines, and will consider integrating the MHI hydraulic DDT technology into the 8MW platform later to better address the customer demands.
The JV will pursue its operations through its Aarhus base that include design, development, procurement and manufacturing of the V164-8.0 MW turbine, as well as all marketing, sales and after-sales service related to offshore wind.
Once the transaction closes, which is expected in March 2014, the senior management of the JV will include Masafumi Wani (chairman), Anders Runevad (vice chairman) and Jens Tommerup (CEO).
Goldman Sachs, Nordea Investment Banking and SEB Corporate Finance have served as joint financial advisers to Vestas in the transaction.
Image: Vestas and Mitsubishi Heavy Industries form a joint venture dedicated to offshore wind energy. Photo: courtesy of Vestas.