Vestas sells Colorado tower factory to CS Wind

Danish wind turbine manufacturer Vestas Wind Systems A/S (CPH:VWS) has signed an agreement to sell its tower factory in Pueblo, Colorado, to South Korean towers maker CS Wind Corp (KRX:112610).

In this way the Pueblo facility will be run by a company specialised in tower production, Vestas said today. CS Wind will start producing towers for other wind turbine manufacturers at the site, providing for increased volume and stronger local job creation. Part of the facility’s output will be reserved for Vestas to ensure domestic supply for the North American market.

This is Vestas’ last tower factory that is owned and operated by the company itself. According to the announcement, the divestment reflects both Vestas' focus on its areas of expertise and the maturation of its supply chain.

“Across our global supply chain footprint, we are involving more partners to build on the foundations we have established for wind energy," said executive vice president and chief operating officer Tommy Rahbek Nielsen. “This includes honing our own resources to where they can be most effective and transferring parts of our operational setup to be run by other industry leaders who can create more value and secure additional long-term jobs,” the COO added.

The Pueblo factory was set up in 2009 as the world’s largest tower manufacturing facility. It now employs over 500 people and produces more than 3,000 tower segments per year. Its acquisition will boost CS Wind’s headcount to more than 3,300. The South Korea-based company, which makes onshore as well as offshore wind towers, has manufacturing facilities in Vietnam, Malaysia, China, Taiwan and Turkey.

Financial details were not provided.

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