Dalian: Wind turbine maker Suzlon Energy could begin exporting Chinese-assembled turbines to third countries as early as next year, the chairman of the company said on Thursday.
With the company expecting about a 40% increase in global revenue this fiscal year, Suzlon is also seeking a Chinese joint-venture partner to produce large turbines in China for the Chinese market, Tulsi Tanti said in an interview at the World Economic Forum in Dalian.
Suzlon, the world’s fifth-largest wind turbine manufacturer by capacity, builds 2-megawatt wind turbines in Tianjin and exports components from China for their assembly at the company’s facilities in India, the United States and Germany.
The company plans to produce 2-megawatt turbines for export that could begin next year, Tanti said, though he did not have a more specific timeline.
A one-megawatt land turbine can provide enough electricity to power 225-300 households, according to Suzlon.
Suzlon hopes to produce its 6-megawatt turbines in China for the Chinese market. They are the largest commercial wind turbines in the world and are currently made at its subsidiary REPower in Germany.
Potential partners could be gas or oil exploration companies with experience in building and operating offshore platforms, Tanti said.
“We are looking at state-owned companies only,” he said of potential joint-venture partners. “We can bring the technology, the other partner brings other expertise, so it will be a good business model to offer customers as a complete turnkey solution.”
The Suzlon JV would manufacture, sell, operate and maintain the sea-based turbines for customers, such as Chinese state-owned electricity providers.
China is a tough market with 60 to 70 domestic competitors, so Suzlon is a small player in the country, with a share of about 2%.
“China will remain a large market for the next two decades,” Tanti said. “If you look at the next 10 years China will need 600 gigawatts of additional energy, and we expect at least 20% will come from wind.”
Suzlon has installed 17,000 megawatts of power in 32 countries. Its biggest markets include India, China and Brazil.
The company reported a profit for the three months through June following a sharp rise in sales after posting a loss in its most recent financial year that ended in March, prompting some analysts to raise their outlooks.
Suzlon shares were 2.3% higher on Thursday afternoon.