Arise to outsource its service operations
Arise AB (publ) has today entered into a 15-year full-service agreement with Vestas. The agreement means that service of all the company’s Vestas wind farms is outsourced to Vestas and in connection thereto some Arise employees will be offered employment with Vestas. According to the agreement, Vestas will take full responsibility for all components in the turbines whilst warranting a high availability in the wind farms. The service cost will increase slightly compared to historical levels but all component risk will be transferred to Vestas. By entering into the agreement, a long and cost effective life span can be secured, which is positive for the long-term value of the assets.
”Up until now the service market has been relatively immature and the component risk has been low in our fleet, which has meant that we have been able to keep the service cost down by having our own organization. The price competition in the market is now increasing while at the same time the component risk in our fleet is rising, as it gets older. All in all, this creates a good opportunity to eliminate component risk and secure a long life span for our wind turbines at an attractive price level. The timing is perfect to implement this change and we are very happy with the agreement with Vestas” , says Daniel Johansson, CEO Arise AB.
“Building on our good relationship with Arise, we are proud that they have chosen Vestas to service their seven Vestas wind farms across Sweden. With this we strengthen our partnership and it gives us the opportunity to further increase annual energy production of the wind farms through a market leading performance and risk management” , says Jan From, Vice President for Service in Vestas Northern Europe.
Halmstad 11 May, 2017
ARISE AB (publ)
For further information, please contact
Daniel Johansson, CEO Arise AB, +46 702 244 133
Per-Erik Eriksson, Head of Operations Arise AB, +46 702 409 902
This information is information that Arise AB is obliged to make public pursuant to the EU MarketAbuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, at 14.20 CET on 11 May, 2017.
Arise is one of Sweden's leading wind power companies with the business concept to develop, build and manage onshore wind farms for its own account and on behalf of investors. The company is listed on NASDAQ Stockholm.
Arise AB (publ), P.O. Box 808, SE-301 18 Halmstad, Sweden, telephone 46 (0)10 450 71 00, corporate id .no. 556274-6726