Nov. 7 (Bloomberg) -- Xinjiang Goldwind Science & Technology Co. received a credit facility worth 10 billion yuan ($1.6 billion) from Industrial & Commercial Bank of China Ltd. as China’s second-biggest turbine maker targets growth abroad.
Goldwind, based in Urumqi, Xinjiang, will have access to loans supporting fixed assets, working capital, acquisitions, trade finance, project financing and export credit over the next two to three years, according an e-mailed statement today.
Renewable energy is one of seven “strategic” industries receiving government support in China. ICBC and other state- controlled banks are signing billions of dollars of credit lines with wind and solar manufacturers including Sinovel Wind Group Co. and Suntech Power Holdings Co. Ltd. to fund capacity expansion and overseas business, according to Bloomberg New Energy Finance.
China Development Bank Corp., which offered a $6 billion credit facility to Goldwind last year, loaned 232 billion yuan to renewable energy and other “green” industries in 2010, according to the London-based research company. That exceeded the 8 billion euros ($11 billion) offered by the European Investment Bank and the $3.16 billion from Brazil’s state-run development bank BNDES, according to BNEF.
Goldwind and its domestic rivals are seeking orders overseas to overcome slowing sales growth in the world’s second- largest economy after the government tightened criteria for approving new projects.
Overtaking Vestas
Sinovel, China’s biggest turbine maker, and Goldwind both won their first major orders in other countries in the past year and plan set up plants abroad. Goldwind may build a plant in the U.S.
Goldwind is targeting North America, Europe, Australia, South America and Africa, Vice President Ma Jinru said in September.
The two companies may overtake Denmark’s Vestas Wind Systems A/S, the world’s biggest supplier, by 2015, according to a Bloomberg New Energy Finance report.
Goldwind’s profit declined 75 percent in the third quarter and warned of a 50 percent to 100 percent slump in full-year net income as prices drop, it said in October
Goldwind share gained 2 percent to HK$5.20 in Hong Kong today.
Source:Businessweek