Suzlon Group to sell China subsidiary for $60 mnJune 23rd, 2012 - 10:24 pm ICT by IANS
New Delhi, June 23 (IANS) Wind turbine maker Suzlon Saturday said it will sell stake in its China manufacturing subsidiary to China Power New Energy (CPNE) Development Company for $60 million (Rs.340 crore).
“The two companies signed a binding term-sheet on June 22, 2012, for the sale of Suzlon Group’s China manufacturing subsidiary — Suzlon Energy Tianjin Limited to CPNE, with the majority of its assets and liabilities, for approximately $60 million,” the company said in a statement.
According to Suzlon Group chairman Tulsi Tanti, the dynamics of the wind energy market have changed considerably over the past year, and the group is realigning its strategy to the China market with an agile, asset light business model to achieve high growth and margins but with lower investments.
“Therefore, we have decided to realign our business there, as reflected in this transaction. This is also in line with our previously announced strategy to dispose of non-critical group assets to reduce our long-term debt,” Tanti said.
“We strongly believe that China will maintain its position as the world’s largest wind market, and we continue to remain fully committed to China and our customers here. Looking ahead, we will approach this market by combining development with an innovative partnership model,” he added.
Suzlon Group established its marketing operations in China in 2005 and followed it up by setting up a wholly-owned manufacturing facility in 2006. The company has installed over 900 MW of wind capacity in China till date.
- Suzlon's arm bags orders worth $387 mn in two months - Apr 23, 2012
- Suzlon Energy posts quarterly net loss of Rs.19.4 crore - Oct 24, 2011
- Suzlon Energy bags Rs.1,149 crore wind power order - Sep 21, 2010
- Suzlon signs wind power deal worth $1.28 bn - Jan 28, 2011
- Suzlon Energy posts quarterly net loss of Rs.286.46 crore - Feb 11, 2012
- Suzlon crosses 15 gigawatt of wind power installations worldwide - Dec 16, 2010
- Suzlon Energy bags 48.3 MW project from Indian Oil - Aug 17, 2011
- Suzlon crosses 5,000 MW of wind power installations in India - Sep 24, 2010
- Suzlon's German unit wins 295 MW offshore contract - Nov 26, 2010
- Sterling Agro buys wind energy equipment from Suzlon - Jan 15, 2011
- Sony to phase out feature phones by September - May 23, 2012
- Chiness wind turbine firm ties up with Reliance - Jul 02, 2012
- Indian IT firm Sanovi opens subsidiary in Dubai - Feb 18, 2012
- Suzlon bags contract for 30 mw wind turbine in Rajasthan - Sep 03, 2010
- Suzlon bags 168.5 MW orders in India - Oct 15, 2010
Tags: 60 million, assets and liabilities, business model, china manufacturing, china market, china power, china subsidiary, cpne, critical group, energy market, group assets, group chairman, light business, new energy, partnership model, term debt, tulsi tanti, wind capacity, wind energy, wind turbine