Hyundai Heavy Industries Co expects annual sales of $300 million from a wind turbine factory in China as it strengthens clean-energy units to pare a reliance on making vessels, Bloomberg reported.
The plant in Weihai in the eastern province of Shandong will open in October and may post at least $50 million of sales next year, Kim Kweon Tae, head of the company’s low-carbon energy business said, the reports added. He also stated that sales may increase sixfold by 2015. “China is a market you can’t ignore,” Kim said. “There will be a lot of competition but we plan to offer better quality and services,” he opined.
The shipyard may also make acquisitions to boost its solar power business as it invests in low-carbon energy despite rising competition from cheaper shipbuilders in China.
The company aims to raise clean-energy sales to 4 trillion won ($3.8 billion) in 2016 from about 600 billion won last year, he said.
The company will use the new factory next year to bid for work on an offshore wind farm planned off Shanghai.
The China plant, which will be able to make 300 2-megawatt turbines annually, will also eventually be used to tender for projects in Southeast Asia.
Hyundai Heavy will also finish developing a 5.5 megawatt turbine suitable for offshore wind farms next year, Kim said. Besides, it is also studying a plan to develop a 10-megawatt unit.
The company will also makes polysilicons used in solar cells and solar-panels, may consider buying other clean-energy companies as there are too many suppliers, which is causing prices to fall.
Hyundai Heavy will also begin work on a wind-farm project in Pakistan after wining certification for its 1.65 mega watt and 2 megawatt turbines, Kim said.
Hyundai Heavy has a global business network in its seven business divisions namely ship building, offshore and engineering, industrial plant and engineering, engine and machinery, electro electric systems, greenenergy and construction equipment.