China's Goldwind takes on Vestas in Brazil turbine big-league after GE factory swoop
Chinese OEM has ambitions of producing bigger turbines than it has been able to offer market so far
Goldwind has concluded the acquisition of a former GE Renewable Energy plant in Camacari, Brazil, to take ownership of what the Chinese OEM described as its first overseas wind turbine manufacturing facility.
The agreement was described as a pivotal stride in Goldwind's global strategic development and a sign of what the Chinese company called its "unwavering confidence" in the Brazilian wind power market,
In its statement, Goldwind said it was committed to investing in both the manufacturing plant and the enhancement of the supply chain.
Goldwind also stated that equipment produced at this plant will meet local content requirements set by Brazil's state-run national development bank (BNDES), offering access to long-term financing.
He also stated that production is expected to begin in Bahia "before the end of the year" and added that talks with potential customers are ongoing.
Goldwind's sales into Brazil have so far depended on much smaller, older models of wind turbine than the company produces for the Chinese market, and lag local market leader Vestas in terms of machines on offer.
Now Goldwind is ready to make a push into the Brazilian market, stating that "the establishment of localised production will positioned the company to strengthen Brazil's wind power supply chain".
The company has so far accumulated installed capacity of 662MW in Brazilian onshore wind projects, mainly in the north-eastern states of Ceara, Piaui and Bahia but stated that this will soon exceed 1GW, as an initial target.
Goldwind also pledged to invest in training "to enhance the professional technical skills of local community, fostering new energy talent and promoting the optimisation and upgrading of local renewable energy sector.
"The acquisition of the Camacari manufacturing plant is a key step for Goldwind to deepen its commitment to Brazil.
"Looking forward, Goldwind will continue to collaborate with partners both domestically and internationally to invest and build in the field of renewable energy in Brazil, working together to construct a local wind power industry cluster," the company stated.
Goldwind made its interest in the former GE facility clear more than a year ago, but the deal was only finalised after Brazil's anti-trust regulator Cade gave its approval last month.
The selling price for the facility, which has been mothballed since October last year, was not made public.
In its representations to Cade, Goldwind made clear that the deal includes a range of manufacturing equipment and stated that an acquisition of an operational plant would reduce the time needed to build up its Brazilian manufacturing capacity, when compared with a greenfield development.
The repowering projects have sometimes involved fitting Goldwind nacelles to re-used towers.
Bigger and lighter
In its representations to Cade, Goldwind made it clear that the Camacari plant will produce different models of turbines than those that the company had brought to the country so far.
The plant may eventually export to other countries in South America, country manager Roberto Veiga, told reporters at a Brazilian wind industry event last year.
He reportedly said Goldwind will bring technology that uses lighter materials and promised a less expensive turbine fabrication process.
In its own representation to Cade, GE described the divestment as an opportunity to reduce costs and reallocate resources.
Hydro headwinds
Largely as a result of this, GE Vernova — as the recently spun-off company is known — is not the only OEM on the retreat there.
Vestas versus Goldwind?
In contrast, Vestas has been enjoying booming sales, with an order backlog of about 6GW for its V150 platform of turbines.
This has been spurring moves to build on the success of the 4.2MW model by upgrading production to 6MW models.
A month ago, the Danish OEM announced an order by Sempra Infrastructure for the Cimarron Wind Farm in Mexico that will see the V-163 turbines deployed for the first time in Latin America.
Some Brazilian market watchers believe a similar breakthrough is on the cards there.
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