Titan Wind Energy to Acquire Danish Wind Tower Plant

Titan Wind Energy (Suzhou) (002531) said that subsidiary, Titan Wind Energy Europe, plans to fully acquire Denmark Varde Wind Tower Plant from Vestas Wind Systems A/SiVestasjand its wholly-owned subsidiary Vestas Blades A/S(Vestas Blades) for 15.18 million euros, equivalent to 120 million yuan, reports Shanghai Securities Journal, citing a company filing today.

Vestas, a world leader in wind turbine manufacturing, was founded in 1945. It has produced wind turbines since 1979 and began to focus on wind energy research and wind power equipment manufacturing in 1987.

It is a world leader in wind energy solutions, and the development, manufacturing, sales and maintenance of wind power generation systems constitute its core business.

Vestas owns two wind power plants, one in Colorado, U.S., the other in Denmark.

According to the report, Titan Wind Energy signed a 5-year supply contract with Vestas on October 27, 2011, which stipulated that Vestas should purchase no fewer than 100 wind tower sets in 2012, 250 sets in 2013 and 300 sets in 2014, while Titan Wind Energy pledged to produce no fewer than 150 sets in 2012, 350 sets in 2013 and 400 sets in 2014. The acquisition will not impact this contract.

According to a market analyst, Titan Wind Energy’s acquisition of overseas assets could be a response to the U.S.’s anti-dumping and anti-subsidy sanctions, as exports made by overseas subsidiaries to the USA will not be subject to them.

According to the report, The U.S. Commerce Department announced on May 30, 2012 that a preliminary anti-dumping and anti-subsidy tax would be levied on application-level wind towers imported from China. Titan Wind Energy is required to pay tax at a rate of 26 percent.

Titan Wind Energy and Vestas signed the agreement Tuesday. The agreement must be approved by Chinese authorities, which is expected to happen shortly. Vestas will transfer the facility in Varde 1 September.

As part of the official Chinese state visit in Denmark, Titan’s Wind Energy acquisition of Vestas’ Tower Factory in Varde will also be marked on Friday 15 June with the signing of a Memorandum of Understanding between the two companies.

Monday 18 June, Titan Wind Energy’s CEO, Mr. Yan Junxu, will visit the factory in Varde to meet with his new employees.

With a production capacity of 1,600 towers a year, Titan Wind Energy is China’s biggest manufacturer of wind turbine towers.

A big part of the production is exported globally to Europe, United States, South America, India, Australia, and Central America. Titan Wind Energy manufactures according to established International Standards and has supplied towers to Vestas since 2006.

Every single day, Vestas wind turbines deliver clean energy that supports the global fight against climate change. Wind power from Vestas’ more than 46,000 wind turbines currently reduces carbon emissions by approximately 55 million tons of CO2 every year, while at the same time building energy security and independence.

Today, Vestas has delivered wind energy in 69 countries, providing jobs for over 20,000 passionate people at our service and project sites, research facilities, factories and offices all over the world. With 66.9 per cent more megawatts installed than our closest competitor and more than 50,000 MW of cumulative installed capacity worldwide, Vestas is the world leader in wind energy.