Vestas’ new strategy for Brazil emphasises investments to meet local wind energy content requirements.

Vestas will refocus efforts on the Brazilian market by implementing a new roadmap for profitable growth in the country.

Vestas will invest up to R$ 100m (EUR 32m) in meeting local content requirements, prioritising initiatives that enable us to compete more effectively in the local wind industry.

With the purpose of respecting local content requirements set by the Brazilian Development Bank (BNDES) under the FINAME II code, Vestas will localise 70 per cent of hub and nacelle manufacturing for 2MW turbines at our facility near Fortaleza in the north-eastern state of Ceará, allowing for production levels in excess of 400 MW per year, with the possibility of reaching up to 800 MW. Blade and tower production will also be sourced locally in order to comply with the requirements.

“We are delighted to announce our plan to ramp up operations in Brazil to comply with local requirements,” says Jean-Marc Lechêne, Vestas Executive Vice President of Manufacturing and Global Sourcing. “Brazil is one of the most competitive and fastest-growing markets in the world. We are confident these investments will meet local content requirements and position Vestas as a key player in the Brazilian market.”

According to Dr. Elbia Melo, CEO of ABEEolica, “the Brazilian auction system is bringing down the cost of energy, creating an attractive environment for foreign investment. The country opted wisely for a competitive energy market model for contracting renewable energy sources. We welcome and encourage the additional competition this investment brings.”

Vestas plans to transfer knowledge behind the state-of-the-art V110-2.0 MW turbine to the local Brazilian organisation by training employees in the best wind facilities in the world in Europe and the USA. To complement this, Vestas also aims to apply our world-class expertise and knowhow in operating wind turbines in the Brazilian market.

“Vestas has a long track record in Brazil having sold almost 1,000 MW.  We will now work closely with our Brazilian partners to adapt our flexible market-leading solutions to their needs,” states Ruben Lazo, Country President of Vestas Brazil. “Increasing our production capacity and improving our service capabilities will allow Vestas Brazil to compete in the local market.”

Vestas aims to participate in the upcoming auctions for projects throughout 2014. Given the planned increase in manufacturing output, Vestas expects to create up to 300 direct jobs in Brazil and an estimated 1,500 indirect jobs in the coming months, with the possibility of producing turbines for export to the rest of Latin America.

Vestas has been present in Brazil since 2000. Having opened an office in Sao Paulo in 2008 to handle all sales, construction and service operations in the country, Vestas inaugurated its first manufacturing facility near Fortaleza in the state of Ceará in late 2011. As of 31 December 2013, Vestas had delivered a total installed capacity of 626 MW to the Brazilian market and has announced firm and unconditional orders of almost 1,000 MW. During the coming months Vestas will install nine V112-3.0 MW turbines to power Honda’s car production plant in Sumaré, São Paulo as part of the company’s strategy to reduce its global CO2 emissions.