Vestas Says It will Defend its Market Position
March 30 2016 - 1:10PM
Dow Jones News
Vestas Wind Systems Chairman Bert Nordberg said Wednesday that
the Danish wind turbine maker was prepared to fight for its
dominant market position, which is under threat as major western
competitors are merging and Chinese producers continue growing
rapidly.
"Scale is a competitive weapon in this industry," Mr. Nordberg
told The Wall Street Journal in an interview. "If Gamesa and
Siemens can find a way to merge, they will be bigger than us by
revenue... it would only motivate our sales force even more to take
back the leadership position that we think we should have."
Last year, Vestas was replaced by China's Goldwind as the
world's biggest wind turbine supplier, but the Danish company kept
outperforming major western competitors like GE and Siemens, in a
record-year for the industry with global installed capacity up 22%
to 63 gigawatts, according to energy analysts FTI Consulting.
Major turbine makers are joining forces to fight Vestas'
dominance and the rising competition from Chinese players,
including a proposed merger of Siemens AG's wind power business and
Spain's Gamesa, a recent merger between Germany's Nordex SE and
Spain's Acciona SA, and GE's acquisition of the power division of
France's Alstom.
"For GE I think it's their way—they were very U.S. and
Mexico-focused—I think that's their way out in the world. Siemens
wants to strengthen its position, and with Gamesa it will get a
little market in China and a big market share in India, and of
course in Spain," Mr. Nordberg said.
Vestas has no immediate plans to participate in any large merger
itself, but may continue to acquire smaller service companies in
the sector, Mr. Nordberg said.
The Danish company could face extra fierce competition this
year, as analysts forecast that global orders could be in for a
temporary drop partly due to a pause in European project decisions.
Vestas has guided for higher revenues and improved margins on in
2016.
Total global wind power capacity last year grew 17% on the year
to 432 gigawatts, according to the Global Wind Energy Council.
China's installed wind power capacity continued its rapid growth to
145 GW, overtaking the European Union's 142 GW, while U.S.
installed capacity reached 74 GW.
Write to Kjetil Malkenes Hovland at kjetilmalkenes.
(END) Dow Jones Newswires
March 30, 2016 12:55 ET (16:55 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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