Danish wind turbine giant Vestas has had a bad week.

Losses were reported of EUR 80m (USD 98.0m) for Q2 2005, compared to a loss of EUR 53m in Q2 2004. The company seems to be having difficulty integrating Danish wind turbine manufacturer NEG Micon.

Meanwhile, Analyst Jesper Klitgaard Frederiksen of Jyske Bank has given it a sell rating.

Vestas has had a meteoric rise on the back of the Danish and German wind booms. But now surely the future of manufacturing wind turbines belongs to China - a land of enormous wind resources. If China can do with wind turbines, what they are starting to do with cars, windpower could make that final cost breakthrough.

That's why on the positive side, it's exciting to hear that Vestas is setting up a blade factory in China.