Sinovel is diverting CNY 1.05 billion ($166 million) that was to be spent on the northeast China Dalian 3-5MW offshore, onshore and inter-tidal general assembly base, and Tianjin Lingang offshore wind turbine transportation base. These plants have now been cancelled.
Instead, it will go to the CNY 395 million Leting offshore wind turbine general assembly base in north China’s Hebei province. It will have a production capacity of 360MW turbines, or 120 sets of 3MW turbines, in three years.
The second new project, with CNY 316 million, is based in Chuxiong, southwest China’s Yunnan province, to produce high-altitude wind turbines. It will be able to annually produce 450MW, or 150 units of 3MW turbines, in three years.
The third new project, with CNY 310 million funds, is located in Datong, north China’s Shanxi province, to produce 3MW and larger turbines. It will have an annual capacity to produce 300MW, or 100 units of 3MW turbines, in three years.
Sinovel launched the IPO in January last year. At the time, it said it aimed to raise CNY 3.5 billion ($525 million) to develop 3MW turbines and production facilities, and offshore transportation bases.
Speaking about the decision to shifts the funds from the Dalian plant to the three new plants, Sinovel vice president Tao Gang said the move was made in response to government policy.
Tao said that during the 12th Five-year Plan period (2011-2015), China is giving priority to offshore wind power development in east China’s Jiangsu, and north China’s Shandong and Hebei provinces.
In June 2011, National Energy Bureau approved plans to construct a 300MW offshore wind farm in Leting, using 3MW turbines. The offshore project is expected to be approved at the end of this year and connected to the grid by the end of 2015.