Crazy - Sinovel might buy Vestas?
Vestas is the world's leading manufacturer of wind turbines for land based and offshore power generation. They also make the largest wind turbines in the world, and are leaders in engineering next generation turbines. Most of their turbines are made in Europe, though they also have a Colorado company that build turbines for the United States.
The wind industry has been very interesting to watch in the last two years. As a power generation technology, wind is now being deployed extensively world-wide, and will be one of the largest expanding renewable power systems over the next 50 years. It is basically the cheapest power generator of renewables and works well in more northern climates where solar is not as efficient. (Such as states surrounding the great lakes in the US or northern countries like Germany).
Vestas was once a quick growing company with ambitious future goals. Vestas had over optimistic outlooks for sales and revenue growth which have been greatly revised in the last two years. Failure to meet expectations and the open admission that leadership was wrong have hammered the stock. However, business is still booming with yearly sales and revenues pretty much at all time highs. Margins have been hurt by competition, however, and profits been awful. There have also been quality issues with wind turbines such as the new V112 (recently had a fire-related failure that is under investigation). The stock has fallen around 90% in the last two years.
Reuters is now reporting that there is a possible takeover bid from the chinese companies of Sinovel or Goldwind for the market leader Vestas. This is ironic, as Sinovel has risen to such heights of success through cheating, lying, and stealing (and bribing). Sinovel destroyed another western wind-power company named American Superconductor (AMSC) by ordering huge amounts of the turbine parts from AMSC, then suddenly refusing orders being delived at the factory gates. At the same time Sinovel stopped payments and refused to pay for all the inventory which had been delivered. Later, it was revealed that Sinovel had obtained encrypted software required to install these turbine parts by bribing an employee of AMSC. After Sinovel had gotten the codes they could sink their supplier with this brutal betrayel. (This is now being legally pursued by AMSC to the Chinese version of a supreme court).
And now, Sinovel is powerful enough to buy the largest wind power company in the west. Amazing!
I hope the western nations are not letting the future of power production completely slip away to China...