Vestas and Mitsubishi Heavy form joint venture

COPENHAGEN, Sept 27 Fri Sep 27, 2013 2:08am EDT

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COPENHAGEN, Sept 27 (Reuters) - Danish wind turbine producer Vestas Wind Systems and Japanese conglomerate Mitsubishi Heavy Industries (MHI) have agreed to form a joint venture dedicated to offshore wind energy.

Vestas will transfer the development of the V164-8.0 MW wind turbine, the order book for its V112 offshore turbine, existing offshore service contracts and around 300 employees to the joint venture, Vestas said in a stock exchange announcement on Friday.

"MHI will inject EUR 100m in cash into the JV and will inject another EUR 200m based on certain milestone achievements reflecting the natural early product life cycle of the V164 turbine," the announcement said.

Equity ownership ratios in the new joint venture will be 50 per cent for each of MHI and Vestas with an option for MHI to change the ownership ratio to 51 per cent for MHI and 49 per cent for Vestas in April 2016. (Reporting by Teis Jensen. Editing by Jane Merriman)

A couple walks along the rough surf during sunset at Oahu's North Shore, December 26, 2013. REUTERS/Kevin Lamarque

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