Coal, Gas, Wind

Vestas to establish generator factory in Tianjin, China

5 June 2006 – The Vestas Group has decided to establish a generator factory in Tianjin, China. The factory will be established in connection with Vestas’ other Chinese factories which are being established in TEDA (Tianjin Economic-Technological Development Area).

The first phase of Vestas’ blade factory in Tianjin will be officially inaugurated next week, and the factory for assembly of nacelles and hubs will together with the extension of the blade factory be ready for production by the middle of 2007.

“The establishment of a generator factory in China is yet another step in the direction of fulfilling Vestas’ strategy where we want to get closer to our customers and at the same time secure a better foreign exchange balance between the Group’s revenue and costs,” says Søren Husted, President of Vestas Nacelles A/S and continues: “It was natural for us to choose a location in TEDA, with whom we already have a good cooperation, and the establishment of another generator factory will also secure the supply of generators to our new nacelle assembly factory in Tianjin.”

The establishment will be initiated as soon as possible, and Vestas expects that the factory will be able to produce its first generators during the second quarter of 2007. The factory will from the beginning have an annual production capacity of approx 350 units of 2 MW generators. Vestas’ investment in the factory amounts to approx EUR 8.5m, and the
generator factory will initially employ around 75 employees.

Separately, Vestas reported that it had received an order for a total of 53 units of the V90-3.0 MW wind turbine for the Lake Bonney Stage 2 wind power project in South Australia.

The order has been placed by Lake Bonney Windpower Pty Ltd, a wholly owned subsidiary of Babcock & Brown Wind Partners Limited, which is a publicly listed Australian company. The order comprises supply and commissioning of the turbines as well as a five-year service and maintenance contract.

Delivery of the wind turbines begins in the third quarter of 2006, and commissioning of the final wind turbines is planned to take place in the first quarter of 2008.

The project is located near Mount Gambier in South Australia, and this project is an extension of the Lake Bonney Stage 1 wind power project consisting of 46 units of the V66-1.75 MW turbine.