Denmark: Vestas Maintains Jobs by Divesting Towers Factory to Titan Wind Energy

In January 2012 Vestas decided to close its tower factory in Varde, Denmark. Now, after running a competitive divestment process, Vestas 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 and thereby maintain most of the jobs for about 120 employees. 

Titan Wind Energy (Suzhou) Co., Ltd. is China’s largest global manufacturer of wind turbine towers and already a long standing supplier to leading turbine manufacturers such as Vestas. 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 the approximately 120 jobs at the factory in Varde.

The agreement carries a number of advantages for all parties involved:

•  Titan Wind Energy establishes European production of towers for both onshore and offshore wind turbines, leveraging on Vestas’ renowned expertise in tower-manufacturing.
• About 120 highly specialised ”greentech” jobs are maintained in Varde, Denmark.
• 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 reduce Vestas’ fixed costs while increasing partnerships and knowledge-sharing with trusted suppliers such as Titan Wind Energy.

Continued cooperation holds promising potential

Going forward, both Titan Wind Energy and Vestas see a huge potential in the continued cooperation.

”We have been cooperating with Vestas for several years, both in China and abroad, and we look forward to further utilising our long-standing partnership within the development and production of technology-leading towers for wind turbines,” says Mr. Yan Junxu, Founder and CEO of Titan Wind Energy (Suzhou) Co., Ltd.

“Our new towers facility here in Denmark increases our possibilities of servicing and expanding our global customer base. The location of our European headquarters in Varde is optimal because we see Denmark as the focal point for the global wind industry. Europe is the region that offers the most promising outlook for the development of offshore wind energy,” Mr. Yan Junxu adds.

Ditlev Engel, Vestas President and CEO, is looking forward to further developing the partnership with Titan Wind Energy:

“This is an excellent agreement for all parties involved. Vestas welcomes the establishment of Titan Wind Energy in what might be described as the cradle of the global wind industry and we see a huge potential in the ongoing cooperation and co-development with Titan Wind Towers. Meanwhile, I would like to express my gratitude to the employees at the Varde facility, who have been loyal to Vestas during an uncertain period. I am truly happy that many of these skilled employees can now continue working at the factory in Varde for a trusted Vestas-partner.”

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 1 September.

As part of the official Chinese state visit in Denmark, Titan’s Wind Energy acquisition of Vestas’ Tower Factory in Varde will also be marked on Friday 15 June with the signing of a Memorandum of Understanding between the two companies.

Monday 18 June, Titan Wind Energy’s CEO, Mr. Yan Junxu, will visit the factory in Varde to meet with his new employees.

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Offshore WIND staff, June 13, 2012; Image:  Vestas