June 23, 2012
Suzlon Group to realize US$ 60 mn by selling China manufacturing subsidiary
- Suzlon Group signs binding term sheet with China Power (Tianjin) New Energy Development Company Ltd (CPNE)
- Suzlon Group will continue its strong presence in China and completeall existing customer / contract obligations
Pune / Beijing: Suzlon Group, the worlds fifth largest wind turbine maker,
announced today that it had entered into a binding agreement to sell its equity in its
wholly-owned China manufacturing subsidiary to China Power (Tianjin) New Energy
Development Company Limited (CPNE).
The two companies signed a binding term-sheet on 22nd June, 2012 for the sale of
Suzlon Groups China manufacturing subsidiary Suzlon Energy Tianjin Limited to
CPNE, with the majority of its assets and liabilities, for approximately US$ 60 mn /
RMB 384 mn / Rs 340 cr. The sale is subject to requisite regulatory approvals.
Speaking on the development, Mr Tulsi Tanti, Chairman Suzlon Group said:
The dynamics of the wind energy market have changed considerably over the past
year, and we are realigning our strategy to the China market with an agile, assetlight
business model to achieve the 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.
We believe this is a positive, strategic move for both companies; the Suzlon Group
monetizes a high-quality enterprise that we have built up since 2006, and CPNE
expands its base and capabilities in a highly competitive marketplace. We strongly
believe that China will maintain its position as the worlds 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.
Suzlon Group established its marketing operations in China in 2005, followed by the
set up of its wholly-owned manufacturing facility in 2006. The company has to-date
installed over 900 MW of wind capacity in China.
