Vestas Extends its Reach into the Russian Market

The Danish company will set up its first blade production plant for wind turbines in Russia, after being signed the agreement on September 7th by Sergey Morozov, Sergey Nikolayevich Vasin, and Tommy Rahbek Nielsen, which are the Governor of the Ulyanovsk region, General director of the Ulyanovsk Region Development Corporation and Senior Vice President of Vestas, respectively.

According to Mr. Nielsen, “wind industry has a huge potential in Russia”, reported the business media Delovoye Obozrenie.

Vestas, which is considered the largest turbine producer all over the world, will invest around USD 24 million (RUB 1.4 billion) in the project, revealed the Kommersant. With this move the Danish firms intends to maximize the localization of components production, while obtaining the legal status of a Russian producer, giving the right to participate in public programs.

Acording to Tommy Rhabek Nielsen, Vestas will comply with the Russian policy of reaching a 65% level of localization or even more, provided that needed suppliers can be found on the Russian market.

The manufacture facilities will be located in the Zavolzhskiy district of Ulyanovsk. Its construction is expected to take place in the short term and will be completed by the middle of 2019. Vestas is expected to reach the production capacity of 300 blades yearly, that in turn will result in the creation of 200 new jobs.