Vestas in US tower supply deal

Vestas has signed a deal to supply wind turbine towers to third-party projects in North America, in a boost for its plant in the US state of Colorado.

The Danish wind equipment group says the two-year supply agreement could utililise up to 25% of the capacity at its tower factory in Pueblo and will create more than 100 jobs by the end of the current quarter.

The deal is a boost for the local economy in Colorado, where wind is a major employer.

The Pueblo facility, along with Vestas’ other plants in the state, saw job cuts and short-timing last year as the US industry faced uncertainty over the renewal of the federal production tax credit (PTC).

The last-gasp extension of the wind incentive was “an important factor in securing this contract”,Vestas says.

According to Vestas, securing the third-party deal – for which manufacturing will begin soon – is part of its global strategy to make the most effective use of its production capacity, while remaining flexible in an uncertain market.

Jean-Marc Lechêne, executive vice president and chief operating officer for Vestas, says: “Vestas is continuously evaluating its manufacturing footprint and opportunities to utilise the current production capacity better. Producing components for third parties is part of this strategy, and although we have had other smaller orders, this new agreement is the first major step in realising this plan.”