Suzlon sells China subsidiary

Suzlon Group, the world’s fifth largest wind turbine maker, entered into a binding agreement to sell its equity in its wholly-owned China manufacturing subsidiary, Suzlon Energy Tianjin Limited, to China Power (Tianjin) New Energy Development Company Limited (CPNE) for approximately US$60 million. The sale is subject to regulatory approvals. Suzlon established its marketing operations in China in 2005 and a manufacturing facility in 2007. The company has installed more than 900 megawatts of wind capacity in China. “The dynamics of the wind energy market have changed considerably over the past year, and we are realigning our strategy to the China market with an agile, asset-light business model to achieve the high growth and margins but with lower investments. Therefore, we have decided to realign our business there, as reflected in this transaction. This is also in line with our previously announced strategy to dispose of non-critical Group assets to reduce our long-term debt,” said Suzlon Chairman Tulsi Tanti.