Vestas unveils integrated wind production base in China

Vestas Wind Systems unveiled its integrated wind power production base in Tianjin, China, helping the area to grow its wind power manufacturing operations

The Danish wind turbine maker said the base is located in northern China's state-sponsored development area, Tianjin Economic-Technological Development Area, and covers more than 230,000 square meters (57 acres). The official unveiling last week included Vestas China President Lars Andre Andersen and the development area's Vice Director of the Administrative Commission Ni Xiangyu.

The company's first blade factory was launched in the development area in 2006, and since then Vestas has been expanding it. The site now includes completed control system and machining factories as well as expanded generator and blade factories.

This is Vestas’ largest integrated wind power production base, incorporating the production of turbine engine rooms, blades, generators, control systems and mechanical parts. A new supply and logistics center for internal wind turbine tower components is also expected to be put into operation.

Vestas has committed RMB 1.8 billion ($220 million) to construct new factories and expand existing ones, as part of its long-term investment strategy. The company’s total investment in the development area has exceeded RMB 2.5 billion ($380 million), accounting for more than 70 percent of its total investment in China.

In January, Vestas said it was planning to invest $350 million in its Tianjin, China-based subsidiary, responding to growing demand in China for its turbines (see Vestas grows wind presence in China [2]).

By the end of the year, Vestas said its investment in China is expected to exceed RMB 3 billion.

China is a significant market for wind turbine manufacturers. The country had an installed capacity of 5.9 GW at the end of 2007, an increase of 145 percent over the previous year. China is expected to surpass Germany as the leading wind-energy country by the end of 2009 (see China Wind ramps to meet gearbox shortfall [3]).

China also has the largest wind turbine manufacturing industry in the world, with more than 40 wind-component manufacturers including Goldwind, Sinovel Wind, Dongfang, Windey and Sewind (see China drives global market, supply for wind [4]). China’s wind equipment market is worth about $8.59 billion annually.

In May, Vestas' competitor Siemens broke ground on a wind turbine production facility in Shanghai's Lingang New City, signifying its entry into China’s wind power market (see Siemens breaks ground in China’s wind market [5]).