Sinovel Wins Bid for China’s First Marine Wind Power Auction

Sinovel Wind Group plans to move its wind power packaging and transportation base from Changxing Island Industrial Park in Dalian city, Liaoning province, to Sheyang Port District in Yancheng city, Jiangsu province, reports yicai.com, citing a company filing.

The move comes after the Beijing-based wind turbine producer won contracts for 600,000 kilowatts in the coastal vicinity of Jiangsu province out of a total of one million kilowatts of wind power exclusive rights in China’s first marine wind power auction. Sinovel will issue no more than 8.5 billion yuan worth of corporate bonds with terms of less than 10 years.

The Yancheng project requires total investment of 1.217 billion yuan, specifically an 891 million yuan segment for the packaging and shipping of marine wind power sets, testing and marine installment services. The other segment is a 326 million yuan project to manufacture tubing used in towers and is also located in Sheyang Port District. The project is scheduled to take two years and has already received approval from local authorities.

Sinovel had originally planned to invest 1.03 billion yuan into projects in Dalian but changed course when the bidding for the Jiangsu projects was complete last autumn. The second national wind power bidding, for projects in the same province, will take place later this year.

Sinovel said China lacks experience in transporting and installing more than marine wind power equipment that accommodates three megawatts or more, and there are a number of technical risks in the project.

(capitalvue)

[mappress]

Source: capitalvue, July 22, 2011;