Visit windpowermonthlyevents.com for the latest on our upcoming conferences and webcasts

Oversupply still hitting turbine manufacturers

WORLDWIDE: Oversupply of wind turbine components should still be a concern despite a closing of the supply-demand gap over the past year, a new report has claimed.

Oversupply of components has come down but remains a problem
Oversupply of components has come down but remains a problem

Make's Global Wind Turbine Supply Chain 2014 report claims that the supply of gearboxes is 90% in excess of global demand, while nacelles are at 80% and blades on 50%.

This is despite a closing of the supply-demand gap over the past 12 months due to facility closures and market exits, Make said. Persistent overcapacity is hitting pricing power, and the report claims that further consolidation is needed throughout the supply chain to combat this.

On a more positive note, Make said that the sale of non-core assets and a refocusing on the higher margin O&M business by a number of manufacturers has helped to pull them back into profitability.

Profit margins have been highest for large Chinese manufacturers, with the companies achieving double digit margins compared to the single digits of their European counterparts.

This is despite the fact that Chinese turbines are significatnly cheaper than European machines, with Ming Yang turbines coming in at EUR 397,692 per megawatt, compared with EUR 967,742 per megawatt from Vestas, according to a Windpower Monthly investigation.

Before commenting please read our rules for commenting on articles.

If you see a comment you find offensive, you can flag it as inappropriate. In the top right-hand corner of an individual comment, you will see 'flag as inappropriate'. Clicking this prompts us to review the comment. For further information see our rules for commenting on articles.

comments powered by Disqus

Windpower Monthly Events

Search more than 4,500 companies in the Windpower Directory

Latest Jobs

[DAYS_LEFT] DAYS Subscribe Now

Left of your Windpower Monthly free trial

Your free trial Subscribe Now

to Windpower Monthly has expired