Strategic Expansion in European Wind Energy: Vestas’ Acquisition of LM Wind Power’s Polish Blade Factory

Vestas’ acquisition of LM Wind Power’s blade factory in Goleniów, Poland, marks a pivotal strategic move in the European wind energy sector. Finalized in May 2025, the deal integrates a facility that has produced blades since 2009 into Vestas’ expanding European footprint, positioning the company to capitalize on surging demand for onshore wind solutions. This acquisition, coupled with Vestas’ existing nacelle assembly in Szczecin and tower production in the region, creates a clustered manufacturing network that promises operational synergies and enhanced market positioning.

Operational Synergies: Clustering for Efficiency

The Goleniów factory’s proximity to Vestas’ Szczecin nacelle and tower production facilities is a masterstroke of industrial logistics. By consolidating blade, hub, and nacelle manufacturing in a single region, Vestas reduces transportation costs, streamlines supply chains, and accelerates production cycles. According to a report by the Baltic Transport Journal, such clustering supports “streamlined production and logistics” in the wind energy sector, a critical advantage as the industry races to meet decarbonization targets [1].

Moreover, the factory’s integration into Vestas’ onshore portfolio—specifically for the V172-7.2 MW EnVentus turbine—aligns with the company’s focus on high-efficiency, low-cost solutions. The facility’s existing infrastructure, expanded in 2017, allows for rapid scaling without the need for greenfield investments. This is particularly valuable as Poland finalizes legislation to relax onshore wind farm construction rules, potentially unlocking 10 GW of new capacity [2].

Market Positioning: A European Powerhouse

Vestas’ acquisition reinforces its dominance in the European wind market, where it holds nearly one-third of the global turbine market share outside China [3]. The move comes as Chinese competitors like Envision Energy overtook Vestas in 2023 with 15.4 GW of installations [4]. However, Vestas’ focus on European markets—where regulatory support for renewables remains robust—positions it to outperform rivals in regions with less policy certainty.

The Polish factory’s role in producing blades for both onshore and offshore turbines underscores Vestas’ dual strategy. While the onshore segment benefits from Poland’s regulatory tailwinds, the company’s offshore ambitions are bolstered by its Szczecin-based V236-15.0 MW turbine production. This diversification mitigates risks tied to any single market segment and aligns with the European Union’s push for energy independence through renewables.

Financial Performance: EBIT Turnaround and Revenue Growth

Vestas’ Q2 2025 results highlight the financial benefits of its strategic integration. , . This turnaround is attributed to reduced warranty costs and stronger onshore performance, despite ongoing offshore ramp-up challenges. .

Leadership changes also play a role. , appointed in September 2025, brings expertise from ZF Wind Power to drive . His focus on of technology and operations is expected to further reduce costs and improve scalability [5].

Competitive Landscape: Navigating Global Challenges

While Vestas faces stiff competition from Chinese manufacturers, its European-centric strategy offers a unique edge. Unlike rivals reliant on export-driven models, Vestas benefits from localized production and regulatory tailwinds in the EU. The company’s recent single-unit sale of the V236-15.0 MW turbine in Denmark and its 2.0 GW order intake in Q2 2025 demonstrate its ability to secure in developed markets [5].

The global wind turbine market, , , driven by renewable energy mandates and technological advancements [6]. Vestas’ investments in larger and efficient turbines position it to capture a disproportionate share of this growth, particularly in Europe.

Investment Outlook: A High-Conviction Play

Vestas’ acquisition of the Polish factory is more than a tactical move—it’s a strategic bet on Europe’s renewable energy future. By leveraging operational synergies, regulatory tailwinds, and a diversified product portfolio, the company is well-positioned to outperform peers in a sector poised for . For investors, the key risks lie in offshore ramp-up costs and global supply chain disruptions, but Vestas’ and leadership in onshore wind provide a buffer.

As the EU accelerates its green transition, Vestas’ will likely become a model for the industry. With a clear path to EBIT margin expansion and revenue growth, this acquisition cements Vestas as a must-watch in the .

Source:
[1] Baltic Transport Journal 2/2024, [https://issuu.com/balticpress/docs/btj-2-24]
[2] Vestas and LM Wind Power sign deal for blades factory in Poland, [https://www.gevernova.com/news/press-releases/vestas-lm-wind-power-sign-deal-blades-factory-poland]
[3] Global Wind Turbine Market Outlook to 2030, [https://www.blackridgeresearch.com/reports/global-wind-turbine-market?srsltid=AfmBOoqaPEC6vCNDtpKtx3kJco6Qs4HHxGklGEJQ4e0t5rIZxBhi8uPB]
[4] Windletter #75 - Top 10 wind turbine manufacturers in 2023, [https://windletteren.substack.com/p/top-10-wind-turbine-manufacturers-2023]
[5] Vestas Increases Revenue by Double Digits in Q2 2025, [https://newenergyinnovation.co.uk/vestas-increases-revenue-by-double-digits-in-q2-2025/]
[6] Navigating Wind Turbine Systems Market Growth 2025-2033, [https://www.marketreportanalytics.com/reports/wind-turbine-systems-232522]