Suzlon to make REpower turbines at Mangalore plant

Suzlon Energy Ltd. | Electric Equipment | Capital Goods & Industrial Consumables | BSE: 532667 | NSE: SUZLON

28 Mar 2011 Evaluate

Suzlon Energy plans to shortly start making RE power wind turbines at its plant near Mangalore. Suzlon owns about 91 per cent of RE power Systems AG of Germany.Suzlon's plan is to manufacture RE power's 2-MW wind turbines in Mangalore and export them to markets such as the US, Canada, Australia and Brazil. It will source gearboxes from Hansen's plant in Coimbatore (Suzlon is the single largest shareholder in Hansen), rotor blades from the Mangalore unit and generators and control systems from Coimbatore.

Starting manufacture of RE power turbines in India will be a major step for both Suzlon and RE power, as the two companies are looking at ways to cut costs in a highly competitive market with excess capacity. The two had signed an agreement under which Suzlon would support the latter as a sales agent in the US, Australia and New Zealand. Suzlon will use the New Mangalore port to export the turbines.

RE power has three production facilities in Germany and one in China, and make s onshore turbines of 2 MW capacity and offshore turbines of up to 6.15 MW capacity. Suzlon and RE power together have a production capacity of 5,900 MW.