Not feeling so breezy

Not feeling so breezy

The answer probably isn’t blowing in the wind, if you believe some of the bleak forecasts for the turbine industry put forward this week.

The Financial Times reported that a sharp slowdown in wind power installations in China this year was set to cause a “bloodbath” among turbine manufacturers, citing the example of Germany’s Repower, which has said it plans to exit China because it is making losses on each unit installed in the country.

The problem, says the South China Morning Post, is massive overcapacity. There are now 80 Chinese turbine manufacturers, and according to Ping An Securities, they can make enough new turbines to generate 29GW a year, while China’s total installed capacity is only 45GW (already the world’s largest).

The result? An official from the China Wind Energy Association reckons only 10 firms will survive. Shareholders will hope two of those are listed firms Sinovel and Xinjiang Goldwind (see WiC80).

© ChinTell Ltd. All rights reserved.

Sponsored by HSBC.

The Week in China website and the weekly magazine publications are owned and maintained by ChinTell Limited, Hong Kong. Neither HSBC nor any member of the HSBC group of companies ("HSBC") endorses the contents and/or is involved in selecting, creating or editing the contents of the Week in China website or the Week in China magazine. The views expressed in these publications are solely the views of ChinTell Limited and do not necessarily reflect the views or investment ideas of HSBC. No responsibility will therefore be assumed by HSBC for the contents of these publications or for the errors or omissions therein.