China Energine to enter wind power JV in China

Dec 9, 2011 - Chinese investment holding company China Energine International (Holdings) Ltd (HKG:1185) today said it had agreed to pour CNY 68.4 million (USD 10.7m/EUR 8.1m) to set up a wind power joint venture in China with local companies.

The company expects the move to the expand its main business of wind farm development and wind turbine production.

The new entity, to be named Gaizhou Wind Power, will have an initial capital of CNY 171.1 million. Beijing Energine, a wholly-owned unit of China Energine, will have a 40%-stake in the new company. Chinese wind power developer Zhongneng Huali will own 30%, wind power components maker Suzhou Tepu will have 28% and plastic products maker Liaoning Juzi will take the remaining 2% of Gaizhou Wind. Total investment in the joint company will stand at CNY 855.3 million.

Gaizhou Wind Power will build and operate two wind farms of 48 MW capacity each in Gaizhou, in the province of Liaoning.

Under the agreement, Zhongneng Huali will buy a 30%-stake in the new company from Beijing Energine 12 months after the connection of the projects to the grid. Zhongneng will also acquire Suzhou Tepu's stake within six months from the grid connection.

The agreement is subject to clearance by the State Administration of Industry and Commerce.

(CNY 1.0 = USD 0.157/EUR 0.118)

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