Vestas considers bolstering lucrative service division

The wind turbine manufacturer's 'mundane' business division delivers both far higher margins than expected and is leading the company's efforts to increase the division's revenue by 50 percent in four years. We will have to look into that, says CEO.

Photo: PR Vestas

As Vestas installs more and more wind turbines, more turbines need servicing. Even though the Danish manufacturer is also trying to snag service agreements for its competitors products – and vice versa –  there is a certain inherent logic that maintenance business is growing in importance. That was immediately apparent from Wednesday's quarterly report, in which the value of the back catalog for service grew by approximately DKK 3 billion (EUR 400 million) to DKK 98.5 billion.

Meanwhile, there is yet another equally peculiar development in that part of the business. Whereas the report's main message was that the average price per megawatt went slightly forward following almost two years of stagnation, the service division received, true to custom, less attention — despite the operating margin of 24.4 percent.

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