Goldman sets out stall on Dong costs
US investment giant Goldman Sachs has told suppliers to Dong Energy that it expects them to help deliver big cost reductions in the offshore wind sector – or it is ready to tap into source new sources in Asia who will.
Martin Hintze, Goldman Sachs’ newly-installed representative on the board of the world’s biggest offshore wind developer, told newspaper Borsen that it is fully behind Dong’s stated aim to drive costs down by up to 40% by 2020.
Speaking a month after Goldman finalised its purchase of a 19% stake in Dong for DKr8bn ($1.5bn) – amid controversy in Denmark – Hintze told the Danish daily that cost reduction is a top priority for the investment bank. “That’s what we bought into as an investor,” he said.
And Hintze, a managing director in the bank's European operations, made it clear that Goldman will not be short of options if it cannot get what it wants from Dong's existing supply chain.
“We can create contact to, for example, Asian sub-suppliers, which we know very well,” he said.
“We can create access to suppliers of components. This will enable Dong Energy to broaden its supplier base.”
Hintze added: “We are a company with a very large knowledge bank behind us. We have 30,000 people at Goldman Sachs, and we are able to create access between Dong Energy and this knowledge.”
The report quoted last year’s deal between Dong and Korea’s LS Cable & System for cabling at the UK’s Westermost Rough offshore wind project as an early example of the group looking to Asia.