MHI Vestas seeks fresh pastures
Expansion into new markets including Asia-Pacific expected to drive growth
MHI Vestas is expecting strong growth beyond 2020 as it accelerates plans to move into new offshore wind markets, particularly Asia-Pacific, and further consolidates its position in mature markets.
The company said northern Europe will remain a core market, but with overall growth moderate to 2020.
It projects industry volumes growing 15% to 20% from around 3GW installed last year. In 2017, the company secured orders totalling 700MW in Germany and two preferred supplier agreements in the UK.
MHI Vestas said the main priorities in 2018 are to “focus on continued manufacturing ramp-up, project execution and securing profitability”.
The company also revealed that factories will increase production of the 8MW platform for new project installations.
However, it warned that this will “adversely impact earnings” in the short term, while “large amortisations of the 8MW platform will likewise impact financial performance”.
MHI Vestas said it expects to double its revenue over a three-year period from the 2015/2016 financial year, while EBITDA and pre-tax profit are expected to break even by 2018 and 2019 respectively.
“The expected development is in line with previous internal expectations, and the strong financial position secured during the first years of operation is tailored to cope with this expected performance,” the company said.
Image: MHI Vestas