Danish wind turbine maker Vestas has confirmed it is in dialogue with Mitsubishi Heavy Industriesregarding a strategic corporation.No further details were given by Vestas but rumours have circulated over past months that it may be a takeover target.
In July the company told NewNet that the talk was ‘no more than speculation’ as banks instructed the company to put together a financial restructuring plan after it was forced to strengthen its cash position by drawing down a €300m ($379m) credit facility.
Once seemingly untouchable, Vestas announced in January that it would be carrying out a major restructuring plan to cut costs and streamline efficiencies.
In its latest results it then said it would be cutting a further 1,400 staff.
Over the past few months, its restructuring has seen the merger of its China and Asia Pacific divisions, which involved the departure of Sean Sutton, president of Vestas Asia Pacific.
It has also halted plans to build on offshore wind manufacturing facility in the UK and sold a tower factory in Denmark to China-based Titan Wind Energy.
Casting a shadow over its continued growth is the expected lapse of the production tax credit in the US, which earlier this year Ditlev Engel, CEO, said would result in an 80 per cent decline in the market.
But in Mitsubishi’s home market of Japan, renewable energy subsidies are likely to give the domestic market a major boost.