Companies

Suzlon to make REpower turbines at Mangalore plant

N. Ramakrishnan Chennai | Updated on March 12, 2018

Mr Tulsi R.Tanti   -  THE HINDU



Suzlon Energy plans to shortly start making REpower wind turbines at its plant near Mangalore. Suzlon owns about 91 per cent of REpower Systems AG of Germany.

“There are definite plans to make REpower turbines at our Mangalore unit, which will be for the export markets,” Mr Tulsi Tanti, Chairman and Managing Director, Suzlon Energy Ltd, told Business Line over telephone today.

Suzlon has a facility at Padubidri, near Mangalore, which makes rotor blades, nacelles (the part at the top of the tower that holds components such as gears and brakes), nacelle covers and nose cones, with a total capacity of 1,500 MW a year.

Suzlon's plan is to manufacture REpower'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 REpower turbines in India will be a major step for both Suzlon and REpower, 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.

Announcing its nine-month results for the period ended December 2010, REpower had said that excess capacity in the wind energy market remained high, which was expected to lead to further pressure on prices and margins for onshore wind turbines in 2011.

The company's board had commenced extensive cost-cutting measures, including purchasing components at lower prices in Asia.

“In order to improve its international competitiveness, the company also intends to invest in additional production facilities abroad,” said a release issued by the company after the results.

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

Suzlon's Rs 2 shares were marginally down on the NSE at Rs 45.40.

Published on March 25, 2011

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