Denmark's Vestas Wind Systems has agreed a joint venture with Japan's Mitsubishi Heavy Industries (MHI) for offshore wind turbines, adding financial muscle to its attempts to catch up with rivals in a sector viewed as the future of wind power.

The deal is the first by Vestas's chief executive Anders Runevad, who joined in August from Swedish telecoms equipment group Ericsson with a brief to turn round the loss-making firm, although it was under discussion for over a year.

Vestas has been hit hard by cuts in subsidies for renewable energy by cash-strapped governments, and has fallen behind rivals such as Germany's Siemens in the small, but fast-growing offshore wind power market.

MHI will provide €100 million in cash, and a further €200 million if certain milestones are met. – (Reuters)