Xu Zhichun business plans were thrown into the air, when demand for rotor blades manufactured by companies, fell suddenly.
The General Manager of Tianjin Dongqi wind turbines Blade Engineering Co discovered some people do not want the blades of 37.5 meters, which are popular for two or three years.
Now, the company offers blades that are 40.3 meters long and productive, making the price increase to meet demand. We produce a knife 36 hours before, but now we have to do one day, said a worker at the laboratory.
Dongqi Tianjin is a unit of Dongfang Electric Corporation (DEC), an extreme maker and plumbing equipment. The company is one of the many blades of companies that have invested in the blades of 37.5 feet, but now seeing a change in demand.
The problem may be back in 2007 and 2008, when companies rushed to the wind industry.
There were only six wind turbine manufacturers in 2004 across the country. This is more than 10 times greater than 70 increases last year. Similarly, the installed capacity of 760 megawatts of wind power (MW) by the end of 2004 and rose to more than 20.000 MW in 2009, making China the third largest market for wind energy in the world.
Insufficient Research and lack of planning is a dramatic expansion in the sector but at the expense of quality. Take, for example, blades. About 70 percent of knives on the market, 37.5 feet, which is enough to cause the power levels expected, said Xu.
Radical expansion brought another problem: the manufacturer of the turbines and the two parties have seen their profits fall in recent years.
It's like roller coasters: We decline all the way from top to bottom, said Xu.
Rates blades about a third compared to those who fell in 2004. The profit margins in some businesses were 25 to 30 percent in 2004, but now the figures are only about 10 percent, said from inside the industry.
We're not losing money, but will not make much profit, either, said Liang Xiaobing, deputy general manager of Dongfang Electric (Tianjin) Wind Power Technology Co, a unit of the turbine, which in December
Was this a program for wind turbines 1,5 MW, the price for each kilowatt of yuan in 6000, early 2009, but now has dropped to less than 5,000 yuan, said Liang. Lowest prices in the sector of wind power, partly because some businesses, especially small to sell their products cheap to the detriment of quality, said that some insiders.
Do you have any Chinese manufacturer of the equipment purchased by a leading edge in the market have now intensified their efforts to improve the technology to ward off the effects of a radical expansion in the sector of wind energy.
Wind Sinovel Group Co, which has the largest share of the domestic market for wind energy is one of them. The company manufactures a national technology and equipment for offshore wind energy research and development (R & D) center, which was approved by the National Energy in January.
Sinovel has begun building a manufacturing base license for 5 megawatts in the city of Yancheng in the province of Jiangsu, in January. The project with an investment volume totaling 1.5 billion yuan, is expected to start production later this year. This includes the production of 5 MW offshore wind and near-shore.
We want Sinovel in the world are three, three years, said Han. Last year, the company produced 2400 of 1,5 MW turbines and 100 turbines of 3 MW, making it the top in terms of production in China.
I think the so-called spare capacity is only a small outdated technologies. There is a further consolidation of the domestic wind power, he said.
Projections after Han, Wu Gang, President of Science & Gold Wind Technology Ltd, another manufacturer of wind turbines in China, said that his company will explore the acquisition of small firms, where industry is entering a consolidation phase.
The company is also the markets in the United States, Australia, Central Europe and Africa, either through investment in wind farms in the region or the sale of products, said Wu.
Today, Chinese manufacturers of wind turbines represent about 70 percent of the domestic market. Some foreign companies now offer more efficient technologies in the market to achieve new successes.
Vestas, a leading energy company in the world wind, has designed a new turbine for the Chinese market, the V60-850 kW turbine, last year. He received the first orders for goods from China Datang Power Renewable Co. in December last year.
China is a unique country, with large variations in geography and weather, said Jens Tommerup, President of Vestas China.
China has decreased over the rule states, more than 70 percent of the plants used in the country have achieved at national level. Analysts say the move will increase competition in the industry.
This will help the development of wind energy in the country and create an open market, reasonable competition, said the China Business News in a report quoting a statement sent to local governments, which are approved by the National Development and Reform Commission the office of financial planning over the country.
The move will increase by the fierce competition between Chinese and foreign enterprises, but also cooperation between them, said one analyst who requested anonymity.
Our goal was always to identify our production as possible. The wind in our Chinese factories currently consists of over 80 per cent local content, and our goal is to raise them.
