Vestas to Consolidate Its APAC Businesses as Next Step in Offshore Expansion
Vestas will consolidate its two business regions in Asia, China (CHI) and Asia Pacific (ASP), into a single Asia Pacific (APAC) business region. The company said that creating one business region for Greater Asia was the next step in its organisational alignment and offshore expansion.
According to the wind turbine manufacturer, the consolidation is aimed at allocating resources more efficiently to execute projects across manufacturing, construction, and service without compromising on safety or quality.
This includes leveraging the company’s competencies across the Greater Asia region, especially at its technology and manufacturing hubs in Tianjin, China and Chennai, India, according to Vestas.
“The global energy market is changing fast, and key to this development is the fast-growing energy demand in Asia, the continuous maturation of wind energy’s supply chain, as well as offshore wind’s rapid expansion from Europe to the rest of the world”, said Henrik Andersen, Group President and Chief Executive Officer.
The new, united region, will be consolidated as of 1 January 2022 and led by Purvin Patel, current President of Vestas ASP.
China will continue to play a pivotal role in Vestas’ global setup, serving markets across Asia and the rest of the world, the company said, adding that it would sustain a dedicated management team focusing on China to reflect the complexity and importance of its footprint in the country.
The integration planning for the new business region will commence on 18 October, while both regions will run independently to ensure business as usual until fully consolidated on 1 January 2022, Vestas said.
“By creating one Vestas business region for Greater Asia, we strengthen our regional setup to serve customers building their portfolio within both onshore and offshore, cater for our substantial supply chain footprint in China and India, establish one united and stronger leadership team, and improve our foundation to build a strong and diverse talent pipeline”, Henrik Andersen said.
In offshore wind, Vestas has several projects in Asia, more specifically Asia Pacific, including a number of wind turbines ordered for intertidal wind projects in Vietnam and a supply contract for the Changfang & Xidao offshore wind farm in Taiwan.