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 Suzlon’s existing China product portfolio

Pune / Tianjin: Suzlon Group, the world’s fifth largest* wind turbine maker, today
announced it has entered into an agreement with China’s 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 S66–1.25 MW, S82–1.5 MW and S88–2.1 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 world’s 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 world’s largest wind market, by integrating Suzlon’s
brand name and technology in the world’s 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.”

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