Sinovel, Goldwind profits slump as China wind market slows further

Date: 
April 27, 2012

In a further sign of just how bad China’s wind market is at the moment, Sinovel Wind Group and Xinjiang Goldwind Science & Technology, the country’s biggest wind turbine makers, have posted dramatic declines in profit in the first quarter.

Sinovel said net income fell 87 percent from a year earlier to 56.8 million yuan (USD9 million) while Goldwind profit fell 97 percent to 6.18 million yuan (USD980,000).

Overcapacity and price competition at home and abroad has trimmed the margins of China’s turbine producers. Global prices fell to 910,000 euros (USD1.2 million) a megawatt, the lowest since at least 2008, in the second half 2011 from the previous six months, according to Bloomberg New Energy Finance.

China is slowing the growth of its wind-power industry through a stricter project-approval process as grids struggle to carry electricity. The National Energy Administration issued plans to approve just 16.76-GW of wind farms this year, compared with 26.83-GW in 2011.