Vestas says it is investing about $90 million to build a factory in Hohhot, the capital of Inner Mongolia, and some $90 million more to expand blade production at its complex in Tianjin, near Beijing. "The bigger trend is that the entire wind energy industry is moving production and component manufacturing to China. The costs are lower; the quality is increasing," says Andrew Hilton of Vestas China, adding that the company has "built up a very good supply chain." Foreign wind turbine manufacturers in China must procure 70% of turbine content locally, but Hilton says Vestas already exceeds the requirement. Construction of the Hohhot factory began last year and after opening in April it will produce a variety of wind turbine components, says Hilton. Further details, including targeted production capacity, will be revealed in April. Vestas expects to open new machinery and controls factories in Tianjin and a foundry at Xuzhou in the province of Jiangsu in central-eastern China. Vestas opened its first Chinese factory in 2005.
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