Sinovel warns on stagnant offshore sector

China may have the largest offshore capacity outside Europe but with no commercial projects in operation, the sector remains in an embryonic state.

Sinovel has installed the country's first project at East Shanghai Bridge, but admitted many of the its offshore turbine orders are languishing in warehouses.

Sinovel vice president Chen Danghui said the company's offshore turbines continue to operate. However, he also signalled a warning for turbine manufacturers looking to enter the market.

Chen said Sinovel had invested heavily in offshore and has won around 900MW in offshore projects in recent years. These include a 102MW pilot project in Shanghai using its 6MW turbine and a variety of commercial projects that have struggled to get off the ground.

According to Chen, the slow progress of the offshore projects has meant a lot of offshore turbines have been left in warehouses. He said both developers and manufacturer should be very cautious in terms of offshore.

Chen's comments come as Sinovel has had another top-level restructure with the election of nine new directors to the board. It also said it would move into profit in 2014.

At the year's first provisional shareholders' meeting held yesterday in Beijing, delegates representing 83.57% of the firm's total shares voted to select nine directors from a list of 15 nominees.

Sinovel board chairman and president Wang Yuan quit the posts in July 2014 following his two predecessors' resignations 14 months and 16 months previously.

The company had since been running without a board chairman. Vice president Tao Gang had been in charge of the company's overall business in the past few months. He chaired yesterday's meeting.

None of the incumbent board directors appeared on the list of nominees. Several former or incumbent directors, including former founding chairman Han Junliang and stand-in president Tao Gang, were ruled by the China Securities Regulatory Commission in December to be barred from stock market operations for periods varying from lifetime to five years.