Investing in Japan
Latest UpdatesDanish wind power plant manufacturer MHI Vestas Offshore Wind establishes company in Tokyo
Nov 26, 2019
MHI Vestas Offshore Wind A/S is a Danish company that engages in the entire process of designing, manufacturing, constructing and servicing of offshore wind turbines. It was established in Aarhus, Denmark in 2014 as a fifty-fifty joint venture between Denmark’s Vestas Wind Systems, the world's top share in wind power generators, and Mitsubishi Heavy Industries, Ltd. The company has two factories in Denmark and one in the UK which it directly operates, and a pre-assembled product shipping base for offshore wind turbines in Denmark.
Denmark is a leading country in the field of renewable energy and the amount of wind power accounts for 41% of total domestic power consumption as of 2018.
Wind conditions are generally better for offshore wind turbines projects than on land, and larger-scale turbines and projects are possible because there are fewer restrictions than for land acquisition and logistics. On the other hand, there are huge risks involved in both construction and its maintenance in terms of accessibility and the weather conditions at sea. However, the company has human resources, knowhow and data cultivated over many years of experience in offshore construction, project management and operational maintenance (O&M). The company constantly monitors the operation and maintenance data from its turbines and stores the data it in a supercomputer together with weather data from around the world. One of the strength of the company is that it can take full advantage of this big data for design and development of wind turbines, spatial planning of wind power projects and simulation of equipment testing.
The MHI Vestas Offshore Wind has expanded its offshore wind power generation business in Europe, including the UK, Belgium and Germany. It is also expanding its market in Asia, intending in 2022 to supply facilities for an offshore wind power plant in Taiwan, for which construction plans are seeing progress. The company has also set up a base in Japan, which it views as a promising market in Asia. In April 2018, MHI Vestas Offshore Wind Japan, Ltd. was established in Tokyo. With the start of its Japanese subsidiary, the company will deliver its turbines to offshore wind projects in Japan and provide construction of offshore turbines and O&M services.
For the establishment of their Japanese base, the JETRO Invest Japan Business Support Center (IBSC) provided temporary office space; consultation on registration, visa, taxation and labor matters; market and licensing information related to the construction business; and introductions to service providers such as an administrative scrivener, tax accountant, certified social insurance labor consultant and recruiting agency.