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Vestas Establishes Blade Factory in China

15 July 2005

Vestas, the European wind turbine producer, has received a business license for its first factory in Tianjin, China.

Having surveyed a number of potential locations, Vestas opted to set up a blade factory in Tianjin Economic-Technological Development Area (TEDA), where Vestas has signed a contract to buy about 190,000 m2 of land. The news comes only a week after Vestas issued details of the nacelle assembly factory the company set up in Spain.

“This location offers good access opportunities to both port, rail, and major roads of China and is therefore well suited for Vestas’ strategy for the region, and we look forward to working with TEDA on this project,” says Ole Borup Jakobsen, President of Vestas Blades A/S.

The establishment of the factory that will employ about 240 people will be started as soon as possible, and Vestas expects to deliver the first 39-metre fibreglass blades for V80-2.0 MW wind turbines during the first half of 2006. At full capacity, the factory will be able to produce approximately 600 turbine blades per year. Vestas’ investment in the new factory totals around mEUR 25 (mUSD 30) and is included in the investment plans described in Vestas’ Annual Report 2004.

In February 2005 the Chinese government passed a new law aimed at promoting the use of sustainable energy. The aim is to create a legal framework to utilize the country’s sustainable energy capacity. The law states that consumers are to cover part of the costs for the use of sustainable energy, while electricity utilities are obliged to purchase supplies from sustainable sources of energy.

“The target of 120,000 MW renewables installed in 2020 proves that China has ambitious plans for the development of clean energy, and we expect that wind power will account for a significant part of the 120,000 MW,” says Ditlev Engel, President and CEO of Vestas Wind Systems A/S.

Mr. Li Yong, Chairman of TEDA states that “Vestas' wind technology will provide powerful support for improvement of China’s power supply and development of clean energy. We welcome this investment project.”

Vestas has installed more than 26,000 wind turbines in more than 50 countries all over the world and employs over 9000 people.





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