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03 May 2006 - Denmark / China
LM Glasfiber announces large blade supply contract with Acciona Windpower's joint venture in China
LM Glasfiber announced that it has concluded a long-term supply agreement with Nantong Casc Wanyuan Acciona Wind Turbine Manufacture Co., Ltd. (NCWA) the Chinese joint venture of Acciona Windpower.
Under the four year supply agreement, LM Glasfiber will supply NCWA with blades for its AW-77 1.5 MW wind turbine from LM Glasfiber's factory in Tianjin, China. The agreement is for an aggregate of 560 MW.
Following the agreement LM Glasfiber's manufacturing capacity in China will be expanded by 50%. New production facilities adjacent to the existing blade factory are scheduled to go online by summer 2006.
Søren F. Knudsen, Sales and Marketing Director of LM Glasfiber, said:
"We are pleased to have signed a supply agreement with Acciona Windpower in China that marks a significant expansion of our long standing customer relationship on one of the world's most interesting growth markets for wind energy. It means a further strengthening of our future order book and added robustness to our financial projections. For Acciona Windpower, it secures long term supply of locally manufactured blades in China, which will help them in reaching the requirement for local content for Chinese wind power projects."
Additional information:
By the year 2020, China wants to increase the contribution of renewable energy for its power requirements from the current 7% to 15% including 30,000 MW wind power which compares to a current installed capacity of approx. 1,260 MW. The Chinese Renewable Energy Act requiring electric utilities with 5 GW capacity or more to meet minimum requirements for renewables in the energy mix went into force on 1 January 2006. The National Development and Reform Commission (NDRC) earlier unveiled that approval for wind power projects will be based on the localisation of the wind power equipment. Wind power equipment must have over 70% of local content. Rotor blades account for 10-15% of the value of a wind turbine.
Source : LM Glasfiber
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