Vestas Renews Wind-Turbine Service Contracts With Italy’s FRI-EL
Vestas signed 15-year contracts to service 110 turbines at four wind-power plants in the Italian regions of Campania, Apulia, Sardinia and Basilicata, the company said today in an e- mailed statement, without disclosing terms.
Vestas is seeking to expand its services unit as profit margins from maintaining turbines are higher than from selling them. In August, the company predicted a margin before interest and tax of 17 percent from its services division in 2012, compared with a zero to 4 percent margin for the whole business.
Revenue from servicing machines will climb 21 percent this year to 850 million euros ($1.1 billion), according to a forecast from the Aarhus, Denmark-based manufacturer.
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