COPENHAGEN: Danish wind turbine maker Vestas said on Friday it has formed a joint venture with Japan's Mitsubishi Heavy Industries to shore up its position in the growing offshore wind turbine market.
Aarhus-based Vestas will transfer development of the V164 offshore turbine to the venture, as well as the order book for its V112 model, existing offshore service contracts and around 300 employees.
In return, Mitsubishi Heavy Industries will invest 100 million euros or $135 million in cash in the joint venture, and another 200 million euros if certain targets are met.
"The joint venture will be well positioned to win an expanding share of the offshore wind turbine market and become a global leader in this attractive and high-growth market," the Danish company said in a statement.
The deal will have no impact on this year's results, and only a marginal effect on next year's revenue and earnings, it added.
Vestas ousted its chief executive in August after posting yet another loss in the second quarter.
The group has been in financial difficulty for several years, owing to an overly ambitious expansion followed by draconian restructuring measures that have included shedding thousands of staff.
Shares in the company were up 10.6 percent in midday trading on the Copenhagen bourse, where the main index was 0.4 percent higher. (AFP)