Vestas Dumps Plans for U.K. Turbine Plant

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Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland) -- Danish company, Vestas Wind Systems (OTC:VWDRY) (Randers, Denmark) has abandoned plans to construct an offshore wind turbine manufacturing plant in the U.K..

The surprise exit comes just one month after the company was granted permission to develop the plant at a 70 hectare site at the Port of Sheerness, in Kent, southeast England. The company, and its partner Peel Ports (Manchester, England), got the go-ahead in May from Swale Borough Council to build the plant at Sheerness Dock on the Isle of Sheppey, a project that was expected to help create up to 2,000 jobs. For additional information see May 29, 2012, article - Vestas Gets Green Light for Turbine Plant in England.

Vestas was expected to construct its forthcoming V164-7.0 megawatt (MW) offshore turbine at Sheerness.

Peel Ports Chief Executive, Mark Whitworth added: "We are extremely disappointed that we have been unable to conclude the agreement with Vestas. However, we remain fully committed to the strategy outlined for the Port of Sheerness of attracting major renewables manufacturers to complement our valued heritage business within the significant footprint of the Port. Port of Sheerness' natural attributes, strategic location and planning consent remain a compelling proposition for major wind turbine manufacturers and will facilitate the delivery of major new investment into the port and the Kent economy."

"Vestas' strong commitment to the development of both the offshore and onshore wind industries is not affected by this decision," explained Juan Araluce, Chief Sales Officer at Vestas Wind Systems A/S. "We will remain active across the two markets in the U.K. as they both continue to show considerable potential."

Vestas claimed that the decision will not affect its research and development operation on the Isle of Wight, off the south coast of England. The facility will build and test the first components for the new 7 MW turbine, including its 80 metre long blades.

In 2009, Vestas ran the U.K.'s only large wind turbine manufacturing facility in Newport on the Isle of Wight. In July of that year it closed the operation blaming decreasing demand for wind turbines in northern Europe and attacked the U.K.'s planning delays and local opposition for slowing down the construction of new windfarms. For additional information, see July 27, 2009, article - Vestas to Shut U.K.'s Only Wind Turbine Manufacturing Plant.

Maria McCaffery, CEO of industry trade group, RenewableUK, commented: "Naturally we are disappointed with this decision, but as the world-leader in offshore wind, the UK remains an attractive place for manufacturers and members of the supply chain to have a base. The Energy Secretary recently described the wind industry as of "strategic national importance" and it is vital that all sectors of Government work together to secure the tens of thousands of jobs and billions of investment the UK is set to achieve in the next 5-10 years".

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