Goldwind sells blade manufacturer for $33 million

CHINA: Goldwind is to sell its wholly owned blade manufacturer Tellhow Wind Power to Sinoma Science and Technology subsidiary Simomatech for CNY 215 million ($33 million).

Tellhow made blades for Goldwind's 1.5MW turbine
Tellhow made blades for Goldwind's 1.5MW turbine

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Tellhow was launched by Goldwind in 2007 and makes blades for the company's 1.5MW direct drive turbine. Goldwind said the sale would allow it to "reduce investment in production". Simomatech also makes wind turbine blades.

In a statement it said "we shall focus on R&D, product quality and sales, and reduce investment in production-related fixed assets."

Last year, Goldwind became China's biggest manufacturer in terms of turbines installed during the year. However, like its competitors, the company has also struggled financially in the current market.

In April, Goldwind announced its Q1 profits fell 97% in the first quarter of this year, to CNY 6.2 million ($980,000).

The decline was attributed to falling turbine prices as a result of market competition amid continuous slowdown of the Chinese wind power industry, and increased management and financial expenses.

As a way to break out of the sluggish market, Ma Jinru, vice-president of Goldwind, said: "This year, we will give priority to sustaining R&D and technological innovation, and explore the overseas market so as to actively cope with changes in the wind power industry and wind power market."

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