Wind

'Who is subsidising who?' EU wind giants reap benefits from China, claims Sany chief

China often second largest manufacturing base of European OEMs despite them selling zero wind turbines there, claims Sany chief

Sany's Europe chief Soares has previously worked at European turbine makers Siemens Gamesa, Vestas and Senvion, as well as India's Suzlon.
Sany's Europe chief Soares has previously worked at European turbine makers Siemens Gamesa, Vestas and Senvion, as well as India's Suzlon.Photo: Sany
Journalist

European wind turbine makers complain about unfair competition from China while buying most of their components there, claims Sany chief Paulo Fernando Soares, as he argued that calls for a level playing field “go both ways.”

Soares, the managing director for Sany in Europe, was speaking to Recharge at WindEnergy Hamburg, a conference expected to draw 40,000 delegates from the global wind sector to Germany this week.
Having been conspicuous by their absence at the WindEurope event in Bilbao earlier this year, Chinese turbine makers are out in force in Hamburg, and talk around unfair trade practices and ‘level playing fields’ is high on the agenda.
Sany, meanwhile, has made its biggest statement of intent for the European market so far, launching two new up to 8MW onshore turbine models it says are tailor-made for the continent, with a view to delivery from 2026.
This comes as the EU Commission pursues an anti-subsidies probe into unnamed Chinese turbine makers across five member states. Soares appeared to confirm Sany is one of those being investigated, saying the OEM will “cooperate with the authorities” on this just as they would “in any case.”

“When you go through a permitting process, you also have to meet requirements that have been established by the local authorities. So we don't see this as any different.”

“We don't think there are unfair subsidies in our view,” he said. “And we will cooperate to show what kind of support we have received, if any.”

'Focus on investment'

Soares argued that there is too much focus on alleged unfair subsidies and too little on investments in new models, factories, automation and digitalisation.

Soares, who worked at Siemens Gamesa, Vestas and Senvion before joining Sany earlier this year, also claimed that many European OEMs buy up to 70% of their components in China. “So that’s ok? Turbines coming over here is not ok?”

European OEMs also assemble turbines in China, said Soares. The annual reports of these companies show that “China is at times the second-largest manufacturing location or assembly location… China being a place where they sell zero turbines.”

Indeed, back in 2021 when he was leading Siemens Gamesa’s onshore wind division in the Asia-Pacific, Soares told Recharge that the Spanish-German turbine maker’s main facility for onshore globally is in the Chinese municipality of Tianjin.
Let's look at the whole thing together and see who is subsidising who.

“Let's look at the whole thing together and see who is subsidising who.

“My view is China subsidises the European industry,” he said, because the volume that Chinese turbine makers “bring to the table” is what allows the supply chain in the country to be so competitive.

“So our view is we subsidise [European OEMs]. Because our volume is what makes that possible.”

As European turbine makers say “all the time, we just want to have a level playing field,” said Soares. “And that goes both ways.”

“So please show me your subsidies, the ones you have received through opening factories in Europe. Show me all the tax support that you have received in Europe. Show me yours compared to mine. And let's see what is fair or unfair.”

“Western OEMs, when they go to China, they get subsidies to build factories there. Show me yours.”

“As I said, they want a level playing field. I also want a level playing field.”

(Copyright)

Related

Published 25 September 2024, 10:57Updated 25 September 2024, 12:39
SanyEuropeChinaAsia-PacificWindEnergy Hamburg