Vestas poised for sensational comeback in China
After two years of downsizing and streamlining the wind turbine giant, Vestas, is ready to once again pursue growth on the Chinese market.
Vestas has focused minimally on China recently during a tough period in which it was forced to shutter factories and lay off hundreds of employees in Denmark and abroad. But now, the winds of change are blowing in the Danish company’s favour once more.
“We will enter and acquire a good chunk of the Chinese market,” Marika Fredriksson, the head of finance at Vestas, told Børsen business newspaper. “We will insert the right people and through focussing on putting China atop our agenda in the coming years we will get our share of the market.”
The Chinese adventure has been looking rather grim in recent times and some experts evaluated Vestas’ share of the Chinese market to have dwindled from five to one percent over the past two years.
“The western players in China have been reduced considerably.” Steen Broust Nielsen, a partner at Make Consulting said. “Meanwhile, we have seen a consolidation of the Chinese wind turbine producers so that the ten largest own almost 80 percent of the market.”
Fredriksson admitted that Vestas had lost motivation to battle for shares in the Chinese market recently, but that its global customers would aid them in a fresh assault on the lucrative market and Nielsen contended that there were trends afoot that would assist it in its quest.
“The need for larger land-based turbines in China is increasing and there is also more focus on quality, which suits Vestas’ reputation internationally,” Nielsen said. “Furthermore, China will see a huge demand for offshore wind turbines in the future.”
Aside from China, Vestas is also eyeing other growth markets, including India and Brazil.