Ming Yang considering to acquire Vestas Wind Systems
September 27, 2012 Category Alternative energy, Environment
New York-listed China Ming Yang Wind Power Group is considering acquiring Vestas Wind System. Ming Yang will offer €1.4 billion to €1.5 billion to buy the Danish company, a source, who declined to be named, said. Ming Yang Wind Power is the 10th largest turbine manufacturer in the world, whereas Vestas produces the most. In the first quarter of 2012, Ming Yang’s revenue plunged by more than 70% year-on-year, the result mainly of overcapacity in the industry and government tightening policies. China’s wind power industry has started to expand at a slower pace as wind projects are being required to go through a stricter approval process. An increase in price competition and a decrease in demand have reduced Chinese wind turbine manufacturers’ profit margins, according to Zhang Chuaiwei, Chairman and CEO of Ming Yang. “Nevertheless, the unusually demanding conditions now prevalent in the industry may prompt further market consolidation, which we believe we will benefit from as a leading market player,” Zhang said. Vestas also reported a larger-than-expected loss. The Danish company closed its factory in Hohhot, Inner Mongolia autonomous region, in June. Vestas installed only 501 megawatt (MW) worth of wind turbines in China in 2011, down 42% from a year earlier. Ming Yang announced a plan to move into India, saying it wants to acquire a significant stake in the Reliance Group unit Global Wind Power and develop up to 2,500 MW of clean energy projects in the country, the China Daily reported.
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