Suzlon reiterates commitment to China

CHINA: Suzlon has responded to rumours it is planning to retreat from China and said it plans to stay and fight for market share in the country.

The announcement from Suzlon (Tianjin) Limited is a response to market rumors that Suzlon is planning to sell its manufacturing facility in Tianjin.

It said: "China, the largest and fastest growing wind power market in the world, has always been a crucial link in our global portfolio. No matter what the consideration, we will not withdraw from this strategically important market.

"More than that, we will intensify investment in China in the future. In the course of exploring the Chinese market, we will cultivate our facilities in China as an important base for global export and R&D."

According to the China Wind Energy Association (CWEA), Suzlon was the 15th largest provider of wind turbines in the country in 2010. However, in 2009, Suzlon was only the 9th largest.

By the end of 2010, Suzlon's wind turbines accounted for 1.8 percent of the Chinese market in terms of cumulative installed capacity. However, their market share is less than one tenth of that of Sinovel, China's largest wind turbine manufacturer.

In recent years, the Chinese wind turbine manufacturing sector has seen intense competition. More wind turbine manufacturers have taken root in China, and prices for their wind turbines have dropped dramatically from CNY6,200 (about $939) per kilowatt in 2008 to CNY3,700 (about $560) per/kW in early 2011.

He Yaozu, CEO of Suzlon Energy (Tianjin) Limited, said: "If we want to maintain our position as a leading wind turbine maker in the world, we must take root in China, a market which accounts for one half of the world's total share."