CS Wind is to acquire the Vestas tower manufacturing facility in Pueblo, Colorado.
The aim of the agreement is to allow the factory to be run by a company specialised in tower manufacturing.
This would enable increased volume as well as sustained local job creation by extending tower production to multiple wind turbine manufacturers, including Vestas.
As a part of an agreement, Vestas will secure an agreed upon volume of the tower factory’s output to secure domestic supply for the North American market.
In addition, CS Wind will expand offerings to include manufacturing of towers to other wind turbine manufacturers through a multi-brand strategy, as well as continue the ongoing Vestas investments and initiatives to reduce CO2-emissions.
Established in 2009 as the world’s largest tower manufacturing facility, the Pueblo factory today employs more than 500 people and manufactures over 3,000 tower segments a year.
The Pueblo location is the last tower factory that Vestas owns and operates itself.
The company said the divesture reflects its focus on deploying resources to areas of expertise, and the maturation and growth of specialised partners like tower suppliers.
To support future growth, Vestas is evolving its core business to focus on key areas of expertise and expanding partnerships with specialised supply chain partners to further optimise domestic supply chain capabilities, the manufacturer said.
Vestas executive vice president and chief operations officer Tommy Rahbek Nielsen said: “Across our global supply chain footprint, we are involving more partners to build on the foundations we have established for wind energy.
“This includes honing our own resources to where they can be most effective and transferring parts of our operational setup to be run by other industry leaders who can create more value and secure additional long-term jobs.
“I’m therefore very excited about the agreement with our long-term partner CS Wind to expand our cooperation further, which can help grow and mature the supply chain in Colorado.”