September 18, 2013
Suzlon Group sells 75% stake in China subsidiary to Poly LongMa Energy (Dalian) Ltd
- Forms 25:75 joint venture with Poly LongMa Energy (Dalian) Ltd
- Poly LongMa Energy (Dalian) Ltd takes over management, China sles
- Suzlon Group becomes technology partner, responsible for manufacturing, quality
- JV covers Suzlons existing China product portfolio
Pune / Tianjin: Suzlon Group, the worlds fifth largest* wind turbine maker, today
announced it has entered into an agreement with Chinas Poly LongMa Energy
(Dalian) Ltd a conglomerate focused on conventional and green energy
investments to divest 75 per cent stake in its China-based manufacturing
subsidiary Suzlon Energy Tianjin Limited (SETL) for US$ 28 mn, with the first
tranche of payment completed per the terms of the agreement. Suzlon Group will
continue to own 25 per cent share in the company and participate in its operations
as joint venture partner.
Thereafter, Poly LongMa Energy (Dalian) Ltd will lead marketing and sales operations
in China, with Suzlon acting as technology partner with its existing China portfolio
including the S661.25 MW, S821.5 MW and S882.1 MW turbines, and manage
manufacturing and quality for the venture.
Speaking on the development, Mr Tulsi Tanti, Chairman Suzlon Group, said:
This is an important step forward for our future business in China. With this joint
venture, we monetize an asset we have built up from 2006, and through our partner,
Poly LongMa Energy (Dalian) Ltd, maintain our strong presence in the worlds largest
market, which remains strategically important for us. With the combined strength of
both groups, the new joint venture will be very well positioned in China, and offer
the potential to explore exports as well.
While this deal has taken time and changes to fructify, we believe this achieves the
best possible balance for the Group and our stakeholders, including our customers,
vendors, lenders and employees.
Speaking on the development, Mr Shen Gaohua, Chairman - Poly LongMa
Energy (Dalian) Ltd, said: With this joint venture deal the new SETL will renew its
vigor of youth. China has the worlds largest wind market, by integrating Suzlons
brand name and technology in the worlds wind turbine industry with our capital and
market resources in China; we believe the new SETL will make brilliant achievements
One Earth, Hadapsar,
in the market. This joint venture will set a good example for cooperation between Indian and Chinese enterprises.