Gamesa starts up its fourth production center in China and signs a new agreement with Longyuan for 344 MW
July, 11, 2008
- The nacelle, gearbox and generator plants in Tianjin incorporate a new production system, the Synchronous Manufacturing System (SMS), which will enable productivity improvements to come about.
- Gamesa will supply more than 400 wind turbine generators to Longyuan throughout 2009.
Bilbao, July 11, 2008. Gamesa Corporación Tecnológica continues to progress in its process of focusing on strategic markets, as a new milestone is reached with the start-up of its production facilities in China. After the start-up of production at its generator plant, Gamesa is now equipped with an integrated production center in Tianjin. The production and assembly of its main wind turbine generator components are concentrated at this site, including: the aforementioned generators, gearboxes, blades and nacelle assembly at a annual pace of production of 700 MW. Gamesa’s industrial project in China has involved an investment of nearly 40 million euros and has led to the creation of 1,000 jobs.
By implementing the new synchronized production system, the so-called Synchronous Manufacturing System (SMS), Gamesa continues to move forward along the path of continuously improving its production systems. This system will also be progressively implemented in Spain, thereby enabling productivity improvements to be reached and providing an efficient response to the market’s existing bottlenecks. The continuous development of local suppliers should also be added to these steps.
New Agreement with Longyuan
Gamesa Corporación Tecnológica has also taken another step forward in it process of focusing on key strategic accounts in the main growth markets by strengthening its relationship with China Longyuan Electric Power Group Corporation, a market leader in renewable energies in China belonging to the largest Chinese electricity group, Guordian Corporation. Gamesa and Longyuan have entered into a new agreement for the supply of 405 Gamesa G5X-850 kW wind turbine generators with a total power of 344 MW. The wind turbine generators will be manufactured in Gamesa’s production facilities in Tianjin. The new agreement reinforces the company’s positioning in the Chinese market and consolidates its business relationship with Longyuan, which began in 2004.
The contract includes the supply of wind turbine generators (without towers), the supervision of their assembly and start-up, along with two years of operation and maintenance. The equipment will be delivered throughout 2009 to seven wind farms located in different Chinese provinces, and the agreement’s value amounts to around € 200 million.
The Fastest Growing Market
Over the last seven years, China has been the largest growing wind power market with an average annual growth of 56%. In 2007 with 3,449 MW, it was the ranked third in terms of growth and was only exceeded by the USA (5,244 MW) and Spain (3,522 MW). China is now ranked fifth in terms of accumulated installed capacity with 6 GW (Source: GWEC). Experts estimate that China’s real growth is yet to materialize. Based on current growth levels, the Chinese Renewable Energy Industry Association (CREIA) foresees a capacity of around 50 GW in 2015.
Gamesa’s share of the market amounted to 15% in 2007 (Source: BTM). The company’s wind turbine sales in China during the past year accounted for 15% of Gamesa’s total sales, up from 11% in 2006. Of the 8,000 MW Gamesa had committed to customers at the end of 2007, China accounted for 14% with 1,120 MW.
About Gamesa
Gamesa is a company specializing in sustainable energy technologies, mainly wind power. Gamesa is the market leader in Spain and is positioned among the three most important wind turbine generator manufacturers in the world with a market share above 15% in 2007.
Gamesa has installed over 13,000 MW of its main product lines in 24 countries spread out over four continents. The annual equivalent of this production amounts to more than 2.78 million tons of petroleum (TEP)/year and prevents the emission into the atmosphere of more than 20.6 million tons of CO2/year.