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Danish firm ends kW turbine production in China

Vestas terminates production at China factory but remains committed to country

Vestas is phasing out production of kW turbines

A Danish firm has ended the production of its kW turbines in China. Wind giant Vestas has decided to phase out the production of the kilowatt platform, including its V52-850 kW and V60-850 kW turbines at its Chinese facility.

On the basis of thorough internal analyses, Vestas projects a low market demand for the kilowatt platform in the coming years. Consequently, the company will terminate the production at its factory in Hohhot, China.

Vestas will honour all firm sales commitments for kilowatt turbines and make sure that any ongoing negotiations for kilowatt orders will be finalised considering the customers’ needs and Vestas’ profitability.

The company said servicing the kilowatt platform will “remain an important business for Vestas and we will continue to offer comprehensive service solutions to the owners and operators of the kilowatt turbines.”

It added that it “remains firmly committed to China and has confidence in China’s long-term growth in the wind energy industry” in spite of the termination of the production at the Hohhot factory.

The termination of the production at the Hohhot factory will come into force over the summer and will lead to annual savings of around EUR 10m. The cost of closing the factory is covered by the 2012 guidance for special items of EUR 50-100m.