The plant will be producing hubs and nacelles for the V110-2.0 MW turbine model. The products from the plant will be used to fulfill the orders totaling 376MW in the country.

Around 70% of the plant’s capacity would be limited to the Brazilian market.

Vestas Brazil general manager Rogério Zampronha said: "With some of the best wind resources in the world, Brazil has a huge potential for wind power and remains one of Vestas’ key strategic markets.

"Our investment in this factory is a key part of providing our customers a strong business case here and underlines Vestas’ competitiveness in Brazil."

Vestas has agreements in place with Aeris to produce blades and with ABB to produce generators locally.

The company maintains 13 wind farms in Brazil, including the Xangri-lá (RS) wind farm which produces electricity for the Honda car manufacturing facility in Sumaré, São Paulo.

Since 2000, Vestas has installed 364 wind turbines with a total installed capacity of 713MW in the country.

The company has recently extended its service agreement with NRG for four wind power plants in California totaling 570MW.

Vestas will continue to provide services at Alta II, III, IV, and V projects for the next 15 years. The projects employ 190 units of V90-3.0 MW turbines in total.