How Vestas CEO Henrik Andersen Is Battling Rising Costs and Chinese Competition
Growing up in Jutland, Henrik Andersen—now Chief Executive Officer of Vestas Wind Systems A/S—spent his childhood watching small wind turbines spin from his window; this early fascination ultimately propelled him to lead the world’s largest wind turbine manufacturer by cumulative installations, boasting more than 204 GW across 88 countries, the highest of any supplier, transforming the boy once captivated by how the blades moved into the man who runs the enterprise decades later.
Andersen took a seat on the Vestas board in 2013 when the Danish manufacturer was, in its own chairman’s words, at a “historic low.” Vestas’s losses had increased almost sixfold from €166 million ($190 million) in 2011 to €963 million ($1.1 billion). Brought in from the Danish banking and facilities management sectors to enforce financial discipline, he helped slash costs by €484 million ($554 million) before taking over as chief executive officer in 2019. When he was installed as CEO in 2019, Andersen says the handover barely registered: “We just got on with business.” That hurdle was only the first of several turbulent situations he would need to oversee.
The manufacturer encountered another severe test following Russia’s invasion of Ukraine in 2022, which disrupted steel shipments, squeezed supply chains, and pushed corporate net losses to €1.57 billion ($1.8 billion). Raw material expenses have climbed significantly since 2020, with steel up over 50% and copper and aluminum prices nearly doubling, according to Julio Dal Poz, managing director at FTI Consulting’s energy transition practice. Dal Poz noted that pricing pressure could intensify as artificial intelligence data centers compete for the exact materials wind developers require.
Financial Turnaround and Order Backlog Growth
Despite rising supply chain costs, Vestas reported an operating profit increase to €446 million for the quarter, up from €57 million during the same period the previous year, as detailed by Fortune. New orders expanded from 2 gigawatts to 3.35 gigawatts year on year, leaving the Danish manufacturer with a total turbine order backlog valued at €36 billion.
Almost all of the newly booked orders are for onshore projects. Offshore development remains far more volatile, with executives targeting 2027 for that segment to turn a profit. Because single offshore installations require years of permitting, financing, and billions in capital before generating electricity, project cancellations or delays significantly alter financial results.
Chinese Market Dominance and State Support
European turbine makers face intense competition from Chinese manufacturers, who captured the five top spots for global annual installations in 2025 according to data from the Global Wind Energy Council cited by Fortune. Goldwind, the leading global supplier, installed nearly 30 gigawatts during that period—double the volume of Vestas.
Chinese producers undercut European pricing by up to 50%, a price advantage driven largely by heavier government backing. ING energy economist Gerben Hieminga pointed out that Chinese firms received between three and eight times more state support on average than OECD-based companies between 2005 and 2024. In response to these market conditions, the European Commission initiated a foreign subsidies investigation into Goldwind’s EU operations.
Offshore Profitability Targets and Employee Resilience
Internal strain has accompanied the industry’s rapid scaling and structural shifts. Andersen acknowledged that the volatility and heavy pressure have caused employee fatigue, prompting some staff members to leave after 2022 to escape the cyclical nature of renewable energy manufacturing.
While the European Union has committed to nearly doubling its installed wind capacity to 425 gigawatts by 2030, Andersen maintains a cautious outlook on the company’s immediate trajectory.
We are happy, but we are not there yet.
Henrik Andersen, Fortune