Suzlon plans to double capacity of US facility

Suzlon Energy, the country's largest wind energy player, as a part of its international expansion plans, may double the capacity of its US blade manufacturing plant in Minnesota and set up an additional gearbox facility at its China plant at Xanjian.

The company is rejigging its revenue streams so that by 2010, a majority of its revenues will come from the US, China and Europe. While these countries are expected to contribute close to 70 per cent of the company's bottomline, the share of its Indian businesses will drop to around 20 per cent. Currently, the Indian business contributes around 60 per cent of the company's revenues.

Said Per Hornung Pedersen, chief executive officer, Suzlon Energy A/S Denmark, "By 2010, 20 per cent of our revenue will come from the US, 20 per cent from Europe and 20 China. 20 per cent will come from India and 20 per cent from the rest of the world."

Pedersen said the company may double the capacity of its 600 mega watt US plant. "We have the land, the necessary infrastructure and if necessary we will double its capacity to meet growing demand."

Suzlon's wholly owned subsidiary, gearbox maker Hansen, is also scouting for a plant location in China, Pedersen said. Suzlon already has a 600 mw integrated turbine manufacturing plant in China.

On the European operations, he said the company currently had a presence of 81 mw on the continent but was looking at expanding business in emerging European markets such as Italy, France, Greece and Portugal and Poland.

Suzlon already has orders from the US, Australia, China and Europe and Latin America. It got three major orders from US, Europe and China, between June and September this year, valued at Rs 1,800 crore.

This year, the share of the company's international business is expected to rise to 40 per cent of its total business, from 10 per cent last year.

By FY07-08, the international orders would total around 60 per cent with domestic orders accounting for 40 per cent.

Suzlon is also investing around Rs 1,500 crore in three plants across India that will enhance its turbine and forging capacities. It is setting up 1,500 mw turbine plant in Karnataka and two forging plants at Vadodra and Coimbatore.

These plants will help meet the international orders, the company chairman Tulsi Tanti said.

Suzlon's European acquisition of turbine gearbox maker Hansen is also being integrated into the changing business mix of the company. Hansen which currently does not supply any gearboxes to Suzlon will start supplies once the proposed capacity addition at its two plants in Belgium are complete.

Hansen's total gearbox capacity is being ramped by 1500 mw to 5800 mw by 2008. From 2009, Hansen will supply 30 per cent of Suzlon's gearbox needs, going up to 50 per cent by 2011, Tanti said. the rest he said would continue to be sourced from Winergy.