Six factories for €1
Vestas Wind Systems A/S is one the largest wind turbine manufacturers currently operating, yet has experienced a “turbulent” time over the last few years, due to the emergence of strong competition from lower-costing Asian counterparts.
The Danish company will now be outsourcing part of its operations. In doing so, it hopes to lower fixed costs by €400 million, in order to curtail two years’ worth of losses and hopefully become profitable again. The company announced on Wednesday that it would be selling six factories based in China, Norway, Sweden, Denmark and Germany, to German industrial group VTC Partners.
VTC will now be responsible for manufacturing the “back-bone” of the Vestas’ wind turbines, the huge steel poles the turbines are mounted on. They will also take on around 1,000 members of staff from the factories, who will work for VTC when the sale is complete.
Vestas will however continue to construct the most distinct parts of their wind turbines, such as the blades and generators.
The six factories were sold to VTC for €1. Vestas could however potentially receive up to €25 million in earnings, depending on the performance of the factories.
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“Should I stay, or should I go?” Britain leaving EU — what repercussions could it have?
It is no secret that David Cameron, the British Prime Minister, is not keen on retaining European Union membership for Great Britain. It is also no secret that he is not alone in his euroscepticism, yet Cameron is actually being further pressured from both Labour and Conservative Party Members of Parliament, to bring the proposed date of the national referendum from 2017, to 2014.
While the Prime Minister thinks it would be wiser to wait for the former date, he is certain such a decision would cause no “uncertainty” for businesses. Toshiyuki Shiga would however seem to think otherwise.
The chief operating officer of Nissan fears that Britain’s separation from the EU would cause great difficulty for foreign investment in the UK car manufacturing industry. Of particular concern for Shiga, was the possibility of import tariffs being changed between UK and the rest of the European Union, which could be a hindrance for the Japanese car manufacturer.
Speaking from Nissan’s headquarters in Japan he said: “A lot of regulations are under the EU. If the UK, after departing from the EU, made unique regulations, unique standards, that would become an obstacle.”
He further elaborates, that staying under the banner of the EU is the more straight forward option due to the unified import tariffs and regulations for safety and emissions.
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The HSBC Global Connections Study
A report released by HSBC, featuring contributions from the Oxford Economics think tank, suggests global trade volumes will increase fourfold over the course of the next sixteen years.
A number of factors are set to play a role in what will be a huge growth spurt. Above all, it would seem that developing nations, which need to construct a more effective infrastructure to keep up with their economic expansion, will be a strong contributing element.
First world countries will also benefit, with the findings of the study showing Germany to be in a favorable position for example. The country is set to profit greatly from the developments, as a result of its reputation, and concentration on producing innovative technology. Developing countries like Vietnam and India for example, as they grow, will begin to more frequently import Germany’s renowned machinery and transport technology.
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