Jiangsu Jixin to put USD 100m in new wind power unit

Oct 15, 2014 - Chinese wind turbine parts manufacturer Jiangsu Jixin Wind Energy Technology (SHA:601218) said Tuesday it plans to invest CNY 600 million (USD 97.9m/EUR 76.6m) to establish a wind power generation subsidiary.

The company explained that the move is in line with its development strategy and said that by expanding into the downstream power generation segment it will increase its overall competitiveness.

Jiangsu Jixin noted the wind power business provides very attractive investment opportunities and is rapidly expanding worldwide. China currently has 91,412 MW of installed wind capacity, which is way below the national 200-GW target, set by Beijing as part of its 2016-2020 plan on energy. The company, therefore, sees great opportunities for expansion and investment.

Pursuant to the plan, Jiangsu Jixin will take hold of 85.71% in the new company. Its chairman and controlling shareholder Shijin Bao will have a 14.29% stake in it and will invest another CNY 100 million.

The name of the new subsidiary is yet to be determined and registered. It will invest in, build and operate wind power plant. The investment in the new entity is subject to approval from the shareholders of the company.

(CNY 1 = USD 0.163/EUR 0.129)

Choose your newsletter by Renewables Now. Join for free!