Tokyo, April 2, 2012 — Mitsubishi Heavy Industries will suspend construction of its wind turbine manufacturing plant in Fort Smith, Arkansas because of sluggish demand in the U.S., according to reports.
The decision came after the company’s board of directors approved an inventory and related measures regarding its onshore wind turbine business.
The factory was due to originally start operations in the second half of 2011 with an initial capacity of 600 MW a year. MHI expects to book a one-time loss of $241 million from its onshore wind turbine business for the year ended March.
According to reports, Mitsubishi also lost a court battle over the design of one of its wind turbines, which may result in the company paying $170 million to GE.