Wind

China’s CRRC touts track record in rail as it ramps global wind power plans

CRRC best known as leading railway supplier but has growing ambitions as wind turbine manufacturer

The manufacturing line of China's 'Fuxing' high-speed bullet trains is seen at CRRC Qingdao Sifang Co in Qingdao, Shandong Province of China.
The manufacturing line of China's 'Fuxing' high-speed bullet trains is seen at CRRC Qingdao Sifang Co in Qingdao, Shandong Province of China.Photo: Getty/Visual China Group via Getty Images
Journalist
Chinese state-owned manufacturing giant CRRC believes technology it has developed building high-speed trains can hand it an advantage over rivals in the wind turbine sector as it ramps up its global ambitions, a senior manager tells Recharge.

Liu Chongbo, deputy general manager of CRRC’s industry development department, was speaking last month at WindEnergy Hamburg, where the Chinese group had bought one of the largest stands on the conference floor as it touted its turbine-making capabilities.

CRRC Group is best known as a railway supplier, claiming to be the world’s largest, but its turbine-making subsidiary is also a significant player in China’s wind sector.

Wood Mackenzie reported CRRC took orders for 2.9GW of turbines in 2023, making it the thirteenth largest seller globally, just ahead of Germany’s Enercon (2.4GW).

CRRC may not be as well-known as some of its Chinese turbine-making competitors, but it made a serious statement of intent at the Hamburg conference by launching the world’s largest floating wind turbine – a 20MW monster for which Chongbo revealed it has already taken a first order.

Much of the core technology and components used in CRRC turbines, including converters and transformers, come from high-speed rail technology, said Chongbo.

The CRRC stand at last month's WindEnergy Hamburg conference, of which the Chinese OEM was a major sponsor.Photo: CRRC

CRRC's turbine-making division can he said also benefit from the group's world-class network of manufacturing facilities and supply chain developed in support of its rail business.

Although CRRC has only sold whole turbines internationally in Vietnam so far, CRRC reports having equipped more than 260 wind farms worldwide. Chongbo said there is no geographical limit to its global ambitions. Where there is demand, CRRC will go, he added.

That includes Europe, said Chongbo, where the growing ambition of Chinese turbine makers has been a contentious issue, with industry body WindEurope claiming they are backed by unfair subsidies.

Indeed, CRRC has already felt the sharp end of an EU Commission anti-subsidies probe – pulling out of a Bulgarian rail tender earlier this year after being accused of making an unduly advantageous offer.

Such controversies notwithstanding, Chongbo said he hoped that CRRC would have more opportunities to sell its kit on the continent, where its compatriot Mingyang has recently had breakthrough success in Germany and Italy.
The recent international expansion drive by Chinese turbine makers has partly been driven by white-hot price competition in their oversaturated home market, which has resulted in razor-thin and even negative profit margins on turbine sales.
CRRC was among Chinese manufacturers that signed a pact agreeing not to sell products or provide services at below cost price – highlighting just how intense competition has become.

Whatever the headwinds for OEMs in China and globally, Chongbo said his hope for CRRC turbines is that they can help people around the world enjoy a “greener life, blue skies and clean water.”

(Copyright)

Related

Published 25 October 2024, 12:33Updated 25 October 2024, 12:33
CRRCChinaAsia-Pacific