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Indian firm to build wind components factory in Brazil

Suzlon agrees to develop wind factory in Brazil after BNDES halts loans

The plant will see wind power developments increase in Brazil

One of India’s biggest wind turbine manufacturers has agreed to build a component factory in Brazil. Suzlon is set to develop the wind factory after news that a Brazilian State bank has suspended its loans.

The Brazilian Development Bank (BNDES) has halted loans for many developers, including Suzlon to verify that they were sourcing 40 per cent of their components from Brazil, one of the loan’s requirements.

In its annual report Suzlon said it has “decided to have local manufacturing facilities based on the requirements.” Suzlon is also considering projects in South Africa for similar reasons. According to reports Suzlon will announce the location for its first factory in Brazil next week.

BNDES has suspended loans for several other big wind companies, including Danish firm Vestas and Clipper Windpower in the US. Brazil plans to increase the local content requirement of their loans to 60 per cent in the future.