Vestas to invest USD 44m to boost Brazilian manufacturing capacity

Jun 5, 2014 - Danish wind turbine maker Vestas Wind Systems A/S (CPH:VWS) said yesterday it will spend up to BRL 100 million (USD 44m/EUR 32m) to boost its Brazilian manufacturing capabilities so it can meet the wind sector’s local content requirements.

In a press release, the company said it is to focus on initiatives that would allow it to compete more effectively in the local wind industry as it is preparing to take part in the upcoming government auctions for wind projects throughout 2014.

Vestas' plan involves localising 70% of hub and nacelle manufacturing for 2-MW turbines at its Fortaleza plant in the northeastern Brazilian state of Ceara. The move will raise production levels to above 400 MW annually, with the possibility of reaching a maximum of 800 MW. The expansion is to create up to 300 direct jobs in the Latin American country plus an estimated 1,500 indirect jobs in the coming months.

Further, in order to comply with the requirements set by the Brazilian Development Bank (BNDES) under the FINAME II code, Vestas will also source blades and towers locally.

As at the end of December 2013, Vestas had installed total of 626 MW of wind capacity in Brazil and has also announced firm and unconditional orders of nearly 1,000 MW.

(BRL 1.0 = USD 0.439/EUR 0.322)

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