Goldwind hit by 74% profit fall

CHINA: Goldwind has been the next turbine manufacturer to be hit by the Chinese market with its announcement of a 74% fall in profits for 2011.

Goldwind's 1.5MW direct drive turbine
Goldwind's 1.5MW direct drive turbine

Goldwind follows Nordex, Suzlon and Sinovel who have all had a difficult 2011 in China. According to Goldwind's preliminary results, its profit for the year was CNY 698 million, with revenues at CNY 12.9 billion, a fall of 27%.

The fall in profits was blamed on slow growth in the Chinese market as a result of government action designed to make the industry more manageable and lower its grid connection backlog. Low prices also had a downward effect.

Yesterday, Nordex blamed similar problems on an 80% fall in turbine sales. It was the latest in a string of turbine manufacturers to suffer from falling revenues in China: Suzlon earlier this month blamed falling revenues and profits on poor grid access for Chinese projects.

At the end of January, Sinovel announced it expected its annual profits to fall 50% due to lower sales volumes and falling turbine prices; Vestas, meanwhile, also in January reported falling profit margins in its Chinese business.

Goldwind has increasingly looked to build its overseas business. One area it has been active is the Americas where it has over 200MW of turbine orders.

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