Danish wind turbine maker Vestas Wind Systems A/S (VWDRY.PK, 0NMK.L) said it has entered an agreement with Chinese Titan Wind Energy (Suzhou) Co., Ltd., a long term partner and supplier to Vestas, to sell off the Danish facility. In January 2012 Vestas had decided to close its tower factory in Varde, Denmark.
Titan Wind Energy and Vestas signed the agreement Tuesday. The agreement must be approved by Chinese authorities, which is expected to happen shortly. Vestas will transfer the facility in Varde September 1.
The acquisition of the towers factory in Varde will establish Titan Wind Energy's global manufacturing footprint in Europe, while also maintaining a vast majority of about 120 jobs at the factory in Varde.
Based on Denmark's leading position within the wind industry and excellent facilities for shipment of large turbine towers mainly intended for offshore, the facility in Varde is ideally positioned to support the further globalisation of Titan Wind Energy's operations. The divestment of the towers facility in Varde will cut Vestas' fixed costs while increasing partnerships and knowledge-sharing with trusted suppliers such as Titan Wind Energy.
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by RTT Staff Writer
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