China's Sany to build wind turbine factory in Kazakhstan
Factory deal with Kazakh sovereign wealth fund could give Sany strategic advantage in Central Asia, an attractive market for Chinese turbine makers
Chinese manufacturing giant Sany has struck a deal to open a wind turbine factory in Kazakhstan, in the latest marker of its growing global ambitions.
The $114m factory is planned to open next year and will reportedly produce nacelles, hubs, towers and other key wind turbine components.
Sany has entered a deal for the factory’s construction with Samruk-Kazyna, a Kazakh sovereign wealth fund, which announced the news today.
Samruk-Kazyna chair Nurlan Zhakupov said the project will not need any additional loans from Kazakhstan's development institutions.
The factory will also have an at least 30% local content requirement, he said.
Samruk-Kazyna said that, together with its partners, it plans to install around 6GW of renewables capacity by 2030 to meet growing power demand. Kazakhstan wants to generate 15% of its power through renewables by that time.
Sany has like other Chinese turbine makers been pushing into global markets in recent years amid white hot domestic price competition among manufacturers, which has squeezed profit margins.
Central Asia is an attractive market for Chinese turbine makers given the close political ties China has with many countries in the region and the lack of domestic competitors.