Intense competition in China wind power equipment market drives profits down: report

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Intense competition in China wind power equipment market drives profits down: report

By Greentech Lead Asia: In 2011, Chinese wind power
equipment manufacturers experienced decline in profit to varying degrees. The
wind power equipment manufacturers have increased their production capacity in
recent years causing increasingly intense competition and driving negative
impact on the market.

According to a new market research report from Reportlinker.com
finds  in 2011, Goldwind reached
net income of RMB607 million, a YoY decline of 73.5 percent; Sinovel
Wind net income dropped 72.8 percent YoY to RMB776 million.

As for wind power equipment parts manufacturers, wind
turbine blade maker Sinoma Science & Technology realized net income
of RMB121 million in 2011, down 31.7 percent.

To overcome such a situation, Chinese wind power
equipment companies have made strategic adjustments to improve corporate
performance. They have increased R&D investment supporting the projects
with higher gross margin. The companies also plan to actively expand overseas
markets to enhance their business.

The report also finds that global wind power equipment
manufacturers were barely satisfactory in terms of performance for 2011.
VESTAS, the world’s largest wind power equipment maker, faced net loss of 166
million euro in FY2011, the first annual loss since 2005.

editor@greentechlead.com