China Development Bank adds $5.5 bln to Goldwind’s coffers
Xinjiang Goldwind Science Technology, China’s second-largest wind-turbine maker, signed a financial agreement with China Development Bank for wind power projects worth 35 billion yuan (USD5.5 billion), Bloomberg reports.
The accord signed through its unit Beijing Tianrun New Energy Investment also covers asset acquisition, Goldwind said yesterday in a statement to the Hong Kong stock exchange. The agreement runs to 2013, according to Urumqi-based Goldwind.
Goldwind’s latest agreement comes after it received a 10 billion-yuan credit facility from Industrial & Commercial Bank of China in November. China’s state-controlled banks are signing billions of dollars of credit lines with wind and solar manufacturers including Sinovel Wind Group and Suntech Power Holdings to fund capacity expansion and overseas business, according to Bloomberg New Energy Finance.
“China’s wind market nearly doubled every year from 2006 to 2010, and domestic turbine makers kept expanding capacity when growth stalled in 2011,” Charles Yonts, an analyst at CLSA in Hong Kong, told Bloomberg by e-mail. “They will be working off the excesses for a couple years and pushing exports, especially to emerging markets.”
Goldwind and domestic rivals are seeking orders overseas to overcome slowing sales growth in the second-largest economy after the government tightened criteria for approving new projects. Goldwind bought two 10-MW wind farms in Montana this month and has orders in seven other US states. Sinovel said yesterday it expects 2011 earnings to fall by more than 50 percent as competition at home and abroad dragged down prices.
The export push occurs as US President Barack Obama said last week he was creating a new trade enforcement group to combat trade practices in nations including China that manufacturers say reap unfair advantages from heavy subsidies.