Subscribe Register Login

Saturday, September 20, 2014, 7:18 a.m.
Top Picks - Arkansas Daily Deal

Mitsubishi halts Fort Smith turbine plant construction

By Bloomberg News

This article was published April 2, 2012 at 12:01 p.m.

Mitsubishi Heavy Industries Ltd., a Japanese maker of heavy machinery, will suspend construction of its wind turbine manufacturing plant in Fort Smith because of sluggish demand in the U.S.

The decision came after the company’s board of directors approved an inventory writedown and related measures regarding its onshore wind-turbine business on March 29, Hideo Ikuno, a spokesman for Mitsubishi Heavy, said by phone today.

“We are putting the factory on hold for now,” he said. The company may resume construction once there are signs of a recovery in demand, Ikuno said.

The price of wind turbines fell 4 percent in the second half of last year from the previous six months to 1.2 million dollars a megawatt, the lowest since at least 2008, according to Bloomberg New Energy Finance.

“Since the 2008 banking crisis, demand for wind turbines in the North American market has stagnated, and the commercialization of cheap oil- shale gas and other matters have had a further dampening effect,” the company said in a statement March 29.

The factory was due to originally start operations in the second half of 2011 with an initial capacity of 600 megawatts a year. Mitsubishi Heavy expects to book a one-time extraordinary loss of 241 million dollars from its onshore wind- turbine business for the year ended March, according to the statement.

Comments on: Mitsubishi halts Fort Smith turbine plant construction

To report abuse or misuse of this area please hit the "Suggest Removal" link in the comment to alert our online managers. Read our Terms of Use policy.

Subscribe Register Login

You must login to make comments.

TOP JOBS

  • Mt

    memorial hospital Stilwell, OK We have recently added more P...
    STILWELL, Ok

  • Field service techs

    field service techniciansdue to continued success and growth...
    LITTLE ROCK, AR

  • Cna

    Butterfield Trail Village is now accepting applications for:...
    FAYETTEVILLE, AR

  • Sales super star

    The Arkansas CW, a Hearst Television property is looking for...
    ROGERS, AR

  • Police officer

    police officerthe City of Fort Smith Civil Service Commissio...
    FORT SMITH, AR

Search 873 jobs >

Top Picks - Arkansas Daily Deal
Arkansas Online