Danish wind turbine firm Vestas to invest $300 million in Korea

DAVOS, Switzerland – Danish wind turbine producer Vestas Wind Systems A/S has said it would invest $300 million in South Korea and positively consider relocating its Singapore-based Asia-Pacific headquarters to Korea.

Vestas Wind Chief Executive Henrik Andersen on Wednesday made the announcement on the sidelines of the World Economic Forum, also known as the Davos Forum, in Switzerland.

He reported the investment and Asian headquarters relocation plans to Korea’s trade minister at a business meeting where Korean President Yoon Suk-yeol also attended, Seoul’s presidential office said.

Through the investment, the world’s largest wind turbine maker plans to build a turbine parts factory in Korea and export components to countries across the Asia Pacific region.

Candidates for the plant site include coastal cities such as Ulsan and Mokpo, officials said.

Vestas is also considering a joint venture with Korean wind turbine tower manufacturer CS Wind Corp., they said.

Last June, CS Wind acquired full ownership of the world’s largest tower manufacturing facility in the US from Vestas for $150 million.

President Yoon was pleased to see “tangible results” from his meeting with Danish Prime Minister Mette Frederiksen last year, when they agreed to expand cooperation in the marine and wind power businesses, Yoon’s office said.

CALL ON BUSINESS LEADERS FOR ACTIVE KOREAN INVESTMENT

During the Davos Forum, Yoon held a luncheon meeting with about 20 chief executives from Korean and multinational companies.

Participants from Korea include Samsung Electronics Co.'s Jay Y. Lee, LG Group Chairman Koo Kwang-mo, Chey Tae-won, SK Group chief and head of the Korea Chamber of Commerce and Industry, Hyundai Motor Co. Chairman Chung Euisun, Lotte Group Chairman Shin Dong-bin, and Hanwha Solutions Corp. Vice Chairman Kim Dong-kwan.

Heads of multinational firms, including IBM, Qualcomm, Intel, Shell and Nestle, were also invited to the luncheon meeting.

From the financial industry, five CEOs from the US, including Stephen A. Schwarzman of Blackstone Inc., the world’s largest private equity firm, and Khaldoon Al Mubarak, chief executive of Mubadala Investment Co., a sovereign wealth fund in the United Arab Emirates (UAE), were invited.

During a summit meeting with President Yoon in Abu Dhabi on Sunday, UAE President Mohammed bin Zayed Al-Nayhan said the country would invest $30 billion in Korea, led by the UAE’s sovereign wealth funds, including Mubadala Investment.

At the luncheon meeting in Davos, Yoon called on global business leaders to make active investments in Korea, vowing to push for market-oriented economic policies for foreign investors.

Write to Dong-Wook Jwa at leftking@hankyung.com
In-Soo Nam edited this article.