Vestas Confirms Vietnam Wind Power Deal

Danish wind turbine manufacturer Vestas Wind Systems (VWS.F) confirmed on Wednesday it had signed an agreement with Vietnamese firm Phu Cuong Group to develop a wind power project but disputed the value of $2 billion reported by the Vietnam Economic Times.

The world's largest wind turbine maker said the memorandum of understanding concerned a 170 megawatt (MW) wind farm project, but it declined to cite a value for the agreement because it did not constitute an unconditional order.

"Together with the Phu Cuong Group in Vietnam, Vestas signed a wind energy collaboration agreement, which is an important element in the company's strategy to grow profitably in emerging wind energy markets," the company said in a statement.

"Vestas informs that media reports citing a supposed $2 billion deal signed in Vietnam are not correct," it added.

For the third quarter, Vestas reported orders for 1,170 MW at a value of 1.0 billion euros, which is equivalent to 855,000 euros in revenue per megawatt. Using that calculation, the 170 MW deal would be valued at roughly 145 million euros ($180 million).

Reporting by Sabina Zawakzki in Copenhagen