A look at the industry dynamics in the wind power sector, and a few stocks investors might be tempted into.
Vestas said on Wednesday it would reduce its production capacity in United States, which entails cutting 450 positions in three factories across Colorado, as the company cited lower near-term demand. "With a larger fleet under service and lower demand in the near-term, we are therefore consolidating our setup in Colorado," Chief Operating Officer Tommy Nielsen said in a statement. Shares in Vestas were down 1.28% at 1334 GMT in Copenhagen.
General Electric's (NYSE: GE) rival Vestas Wind Systems (OTC: VWDRY) announced this week that it is launching the largest offshore wind turbine with its V236-15.0 MW. The "236" refers to the rotor diameter of 236 meters and "15.0" refers to the fact that it can produce 15 megawatts (MW) of power when operating at a normal speed. The size of the rotor diameter puts it ahead of Siemens Gamesa's SG 14-222 DD offshore wind turbine (no prizes for guessing that it has 14 MW of output power and a rotor diameter of 222 meters) and GE's largest version of its offshore turbine Haliade-X with a rotor diameter of 220 meters and power of 14MW.