State-Owned Port Operator Ups Its Bet on Wind Energy
What’s new: Zhuhai Port Holdings Group Co. Ltd., a state-owned enterprise that operates ports in the southern coastal city of Zhuhai, acquired a 29.9% stake in Shenzhen-listed wind turbine tower equipment maker Qingdao Tianneng Heavy Industries Co. Ltd., according to a Sunday statement. The final transaction amount has not been disclosed.
Qingdao Tianneng is a major manufacturer of wind turbine towers in China, with a market share of up to 11% last year, according to a report by Guosen Securities.
The wind turbine maker’s profit surged 72% year-on-year for the January to September period to 250 million yuan ($37.8 million), thanks to developers rushing to build wind power stations ahead of a scheduled rollback of government subsidies. The company has 124 megawatts (MW) of wind farms connected to the state grid and another 240 MW under construction.
What’s the background: This is Zhuhai Port Holdings’ second acquisition after the southern province of Guangzhou, where it is located, released a draft plan in May aiming to boost the region’s renewable energy sector.
In August, it purchased a 5% stake in wind power spindle maker Tongyu Heavy Industry Co. Ltd. for 390 million yuan.
Guangdong province in September pledged to have 15 gigawatts of offshore wind farms by 2025 and to nurture leading manufacturers in the sector.
Quick Takes are condensed versions of China-related stories for fast news you can use. To read the full Caixin article in Chinese, click here.
Contact reporter Lu Yutong (firstname.lastname@example.org) and editor Marcus Ryder (email@example.com)
Support quality journalism in China. Subscribe to Caixin Global starting at $0.99.
- MOST POPULAR