Vestas loses up to €18 million through unauthorised deals

Posted at October 3, 2012 » By : » Categories : News » Comments Off on Vestas loses up to €18 million through unauthorised deals

Yet more trouble for Danish turbine manufacturer Vestas as it confirms that its former chief financial officer may have lost the company up to €18 million.

According to a statement from the company in the last 24 hours, the board of directors of Vestas have terminated its severance agreement with Henrik Nørremark after it came to light that he had entered into two deals in India without the knowledge of the board or the CEO.

The deals signed last year, which Vestas says were “in violation of the company’s internal provisions” and its interests, have definitely lost the company €4 million and may have lost a further €14 million.

The company says it is now examining whether the €14 million, which has been transferred to two Indian companies, could be recouped. Either way, the company says it has made provision to cover the losses.

“We have not yet taken a position on whether there are grounds for legal claims. It is a complex investigation, which is going on,” said chair of the board, Bert Nordberg.

Nørremark, who also served as deputy chief executive, resigned in February after the company issued a second profit warning.

Meanwhile, in better news for the company, it has also announced that it is increasing the capacity of its new V164 platform to 8 MW.

The 8 MW version, which Vestas says has always been a possibility, will offer lower cost of energy while maintaining the reliability and structural integrity of the turbine.

Vestas says development of the V164-8.0 MW is on schedule, with the 80 m blades ready for testing at the company’s Isle of Wight facility.

The first prototype of the new deepwater offshore turbine will be installed in Oesterild, Denmark in 2014, following testing of the generator and gear box early next year.

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Related stories:
Vestas in talks with Mitsubishi Heavy Industries over ‘cooperation’ (4-Sept)
Chinese turbine manufacturers considering Vestas bid (17-Apr)
Turbulent times at turbine manufacturer Vestas (8-Feb)

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