You are here

Sinovel ends plans to build four China wind manufacturing plants

China turbine maker cancels plans to build wind manufacturing plants and scale back projects to develop others to cut spending due to orders decline

Wind turbine manufacturing
The decision to cancel plans to build the wind manufacturing plants is reported to save Sinovel up to RMB 2.63bn

Chinese turbine maker Sinovel has stopped plans to build four wind manufacturing plants, according to reports. The Sinovel Wind Group has cancelled projects to construct the wind manufacturing plants and scale back plans to develop others in a bid to cut spending due to a decline in orders, according to Bloomberg. The decision will save Sinovel as much as RMB 2.63bn (USD 430m).

Wind manufacturing plants being cancelled are Hebei Laoting, Yunnan Chuxiong, Shanxi Datong and Jiangsu Yancheng Port. Cancelling the wind plants will save Sinovel up to RMB 1.7bn.

Funding will also be cut for the second phases of Sinovel’s Yancheng Wind Energy Manufacturing Base and the Jiuquan Wind Power Manufacturing Base in Beijing, as well as the company’s large-scale wind power research and development centre. The cuts will result in savings of RMB 930.5m, Bloomberg said.

Sinovel said the company board approved the measures to cancel and scale back the wind manufacturing plant projects, which were announced in a statement to the Shanghai stock exchange earlier this week.

“Sinovel is cutting spending as orders decline,” the company said. The company also said in January its 2013 net loss would be around RMB 3bn, partly as a result of delayed payments from clients.

The decision to cancel the wind manufacturing plants has been made despite Sinovel’s work to expand business and move into international markets over the last few years. Renewable Energy Technology reported in July 2012 German inspection firm TUV Nord would be certifying Sinovel’s 6MW wind turbine to help the company expand into international offshore wind markets. TÜV NORD said, at the time, the turbine will be one of the first Chinese-designed offshore wind power systems with internationally recognised type certification.

Lars Sitzki, head of TÜV NORD wind power services in Hamburg, Germany, said: “Such certification enables manufacturers like Sinovel to demonstrate compliance with international standards. This is essential in order to play a part in global wind farm projects."