What can you buy for €1?

It’s amazing what a Euro buys you these days…

Six Vestas manufacturing units for a start.

In the Danish turbine manufacturers’ latest deal, the business will offload both of its machining units and four of its casting units to German industrial conglomerate VTC Partners.

Overall, Vestas is largely shrouding the deal in secrecy – as whilst cash has yet to change hands, it would appear that Vestas will receive up to €25million if the factory units reach certain undisclosed criteria.

The manufacturer also claims that having outsourced the machining and casting of its equipment, it will save in the region of €30million over the next two years.

The agreement comes hot on the heals of another deal Vestas announced in the last fortnight – a strategic tie up with Mitsubishi Heavy Industries to co-develop offshore wind turbines.

Seen together both developments offer an insight into the degree of retrenchment the Danish business is going through as it looks to stem its losses, and also where it’s placing its future bets.

As onshore wind has slowed in the developed markets, and the emerging markets face tighter competition, it certainly makes sense for the business to secure a place in the offshore market – a sector largely dominated by Siemens.

To its credit, however, Vestas has recognised that innovation in the offshore market will be key.

The tie-up with Mitsubishi will be to launch an 8MW offshore machine, one of the largest available.

The firm has also made headway in the floating turbine industry, likely to be a significant area of the market in Japan, having worked with EDP and Principle Power to install a prototype off the Portuguese coast in 2011, ahead of a number of other designs.

Whether these measures will be enough to propel Vestas back to the market dominance it once held remains to be seen, but a focussed strategy with clear aims, objectives and deliverables should, in the short term at least, keep the rating agencies away from further downgrades.

It’s amazing what a Euro buys you these days…

Six Vestas manufacturing units for a start.

In the Danish turbine manufacturers’ latest deal, the business will offload both of its machining units and four of its casting units to German industrial conglomerate VTC Partners.

Overall, Vestas is largely shrouding the deal in secrecy – as whilst cash has yet to change hands, it would appear that Vestas will receive up to €25million if the factory units reach certain undisclosed criteria.

The manufacturer also claims that having outsourced the machining and casting of its equipment, it will save in the region of €30million over the next two years.

The agreement comes hot on the heals of another deal Vestas announced in the last fortnight – a strategic tie up with Mitsubishi Heavy Industries to co-develop offshore wind turbines.

Seen together both developments offer an insight into the degree of retrenchment the Danish business is going through as it looks to stem its losses, and also where it’s placing its future bets.

As onshore wind has slowed in the developed markets, and the emerging markets face tighter competition, it certainly makes sense for the business to secure a place in the offshore market – a sector largely dominated by Siemens.

To its credit, however, Vestas has recognised that innovation in the offshore market will be key.

The tie-up with Mitsubishi will be to launch an 8MW offshore machine, one of the largest available.

The firm has also made headway in the floating turbine industry, likely to be a significant area of the market in Japan, having worked with EDP and Principle Power to install a prototype off the Portuguese coast in 2011, ahead of a number of other designs.

Whether these measures will be enough to propel Vestas back to the market dominance it once held remains to be seen, but a focussed strategy with clear aims, objectives and deliverables should, in the short term at least, keep the rating agencies away from further downgrades.

It’s amazing what a Euro buys you these days…

Six Vestas manufacturing units for a start.

In the Danish turbine manufacturers’ latest deal, the business will offload both of its machining units and four of its casting units to German industrial conglomerate VTC Partners.

Overall, Vestas is largely shrouding the deal in secrecy – as whilst cash has yet to change hands, it would appear that Vestas will receive up to €25million if the factory units reach certain undisclosed criteria.

The manufacturer also claims that having outsourced the machining and casting of its equipment, it will save in the region of €30million over the next two years.

The agreement comes hot on the heals of another deal Vestas announced in the last fortnight – a strategic tie up with Mitsubishi Heavy Industries to co-develop offshore wind turbines.

Seen together both developments offer an insight into the degree of retrenchment the Danish business is going through as it looks to stem its losses, and also where it’s placing its future bets.

As onshore wind has slowed in the developed markets, and the emerging markets face tighter competition, it certainly makes sense for the business to secure a place in the offshore market – a sector largely dominated by Siemens.

To its credit, however, Vestas has recognised that innovation in the offshore market will be key.

The tie-up with Mitsubishi will be to launch an 8MW offshore machine, one of the largest available.

The firm has also made headway in the floating turbine industry, likely to be a significant area of the market in Japan, having worked with EDP and Principle Power to install a prototype off the Portuguese coast in 2011, ahead of a number of other designs.

Whether these measures will be enough to propel Vestas back to the market dominance it once held remains to be seen, but a focussed strategy with clear aims, objectives and deliverables should, in the short term at least, keep the rating agencies away from further downgrades.