MHI Vestas confirmed a key localisation component today in Taiwan as it signed a contract with Swancor for the supply of materials used in blade manufacturing.
The conditional agreement, signed today at a press event in Taipei, is the second for MHI Vestas in Taiwan following the contract for local tower production signed in October 2018 with CS Wind/Chin Fong.
The scope of the Swancor contract goes substantially beyond local requirements for blade materials and covers more than 50% of the direct materials value of blade manufacturing (including carbon tow, carbon pultrusion, resin, and bonding glue), representing a significant step forward for MHI Vestas’ localisation efforts and Swancor’s entry into the offshore wind sector.
Importantly, the agreement also holds the prospect of global supply for all MHI Vestas projects, signifying a notable export opportunity for Swancor and the chance for MHI Vestas to add a world-leading company to its growing stable of global suppliers.
“Signing this agreement with Swancor underlines our strong commitment to the Taiwan offshore wind market and the buildup of a sustainable supply chain,” said Lars Bondo Krogsgaard, MHI Vestas Co-CEO. “With local production of blade materials now confirmed, with the potential for global supply, we will continue to advance our localisation agenda to ensure that we are ready to deliver on our first projects in the market.”
To support the blade materials agreement with MHI Vestas, Swancor announced a new joint venture is in the planning stages, noting that it is considering a partnership with Formosa Plastics Corporation.
“The cooperation between Swancor and MHI Vestas will create a significant milestone for Taiwan wind turbine blade materials,” said Robert Tsai, Chairman from Swancor Holding Co., LTD. “Swancor is also evaluating a joint venture agreement with Formosa Plastics Corporation to establish a carbon fibre material production base in Taiwan. The joint venture looks to become the first hub in Asia to provide wind turbine blade materials for MHI Vestas globally, and it’s all being done early to achieve the government’s goal of offshore wind power localization and to expand employment opportunities.”
After formalizing a localisation agreement in October 2018 with Copenhagen Infrastructure Partners (CIP), the company’s sustainable supply chain efforts are slated to provide a substantial boost to the local economy through both direct and indirect jobs.
“CIP is delighted to consummate the advanced realization of resin localisation ahead of the government target,” said Marina Hsu, Chief Development Officer at CIP. “The government’s WTG localisation will be delivered by CIP, CSC and MVOW. That is, with the combined volume between CIP and CSC, this team is required to deliver 16 components, which is excessive compared to the global offshore wind sector. We hereby advocate a realistic examination of the localization requirement based on supply chain readiness, quality, deliverability, price and HSE.”
MHI Vestas is in line to provide its 9 MW platform for three upcoming projects in the Taiwan offshore wind energy market.