MHI Vestas Offshore Wind Pens Sweeping Series of MOUs in Taiwan

Aarhus, 28 March, 2018

On the heels of early selection for a portfolio of projects, the company bolsters its commitment to the region by signing four MOUs with local manufacturers committed to leading Taiwan’s clean energy transition.

Signaling a new era in the company’s global ambitions, MHI Vestas signed Memorandums of Understanding today with four prestigious Taiwanese companies: CSMC (towers), Tien Li (blade manufacturing), Swancor (composites/resins), and Formosa Plastics Corporation (materials for blade manufacturing).

The agreements are the realisation of the company’s manufacturing strategy for the region and leverage the unparalleled experience in energy infrastructure of the Mitsubishi Group in Taiwan. 
“The Taiwan offshore wind market has impressively put itself in a front-runner position in the region. Having the benefit of early selection of a portfolio of projects allows us to enter into these manufacturing agreements with great confidence. We are honoured to announce these partnerships today – partnerships that will spur the expansion of highly-skilled, local manufacturing jobs,” said MHI Vestas incoming CEO, Philippe Kavafyan.

"In bringing our market-leading 9 MW turbine platform and a rich heritage of energy infrastructure experience through Mitsubishi Group, MHI Vestas is well positioned to be the market leader in Taiwan".

Mitsubishi Corporation Taiwan Chairman & CEO, Mr. Koji Nemoto, said,

“Mitsubishi Corporation (MC) has been actively operating in Taiwan since the 1940s, especially in the power business. MC has installed a number of power plants together with MHI for Taipower and other owners. At the same time, MC has been building a great relationship with MHI Vestas through the offshore wind business in Europe.”

Mr. Nemoto continued, “With this background, we highly welcome and fully support MHI Vestas for its market entry to the emerging offshore wind market in Taiwan and we are confident that they will greatly contribute to realising the energy transition in Taiwan.

The four agreements signed today form a strong foundation of supplier partnerships for MHI Vestas, with more on the way. MHI Vestas has signed China Steel Machinery Corporation (CSMC), an established leader in steel manufacturing, to provide towers for the 9 MW turbine platform on offer in Taiwan. The production will be based in Kaohsiung.

Formosa Plastics Corporation (FPC), one of the world’s largest chemical manufacturing companies, was signed by MHI Vestas to provide materials for blade manufacturing.

MHI Vestas has signed Swancor, a market-leading company in environmental protection and safety, to supply composites and resins for the blade manufacturing process.

Mr. Robert Tsai, Chairman of Swancor, said,

“As the pioneer of Taiwanese offshore wind farm development, Swancor is not only providing the experience to support localisation but also cooperating with MHI Vestas on wind turbine blade materials, including infusion epoxy resin, bonding paste and carbon fibre plates. I believe that this cooperation with MHI Vestas will help Taiwanese local suppliers to enter the global supply chain and help advance Taiwan offshore wind development.”

Tien Li, an industrial leader in blade manufacturing, has been selected by MHI Vestas to handle production of the company’s turbine blades. The blades will be produced in Taichung. 
Tien Li President, Mr. Jonathan Lin, said,

“In response to the government’s offshore policy, Tien Li Offshore Wind Technology Co., Ltd. (TLC) plans to set up a blade factory in Taichung Harbour to develop a local supply chain for offshore wind power in Taiwan. It is an honour to cooperate with MHI Vestas Offshore Wind. TLC will combine European technology and Taiwanese management to provide blades to MHI Vestas. TLC is confident in its ambition to become the third professional offshore blade company in the world.

Boasting abundant wind resources and a growing appetite for renewable energy, the Taiwan offshore wind market has set a pioneering course, paving the way for large-scale sustainable energy and accelerating the market’s green energy transition.

Offshore wind has enjoyed extraordinary momentum in recent months in the UK, buoyed by historically low energy prices in the September 2017 Contract for Difference auction round. The auction proved that offshore wind energy in the UK is now cheaper than nuclear and on par with traditional energy sources. 
The new MHI Vestas Warrington office is the latest addition to offshore wind’s historic rise and will ensure dedicated wind park support for years to come.

About MHI Vestas Offshore Wind 

MHI Vestas Offshore Wind is a joint venture between Vestas Wind Systems A/S 50% and Mitsubishi Heavy Industries (MHI) 50%. The company’s focus is to design, manufacture, install and service wind turbines for the offshore wind industry. The company aims to create sustainable value through offshore wind power by driving capital and operating savings and increasing the power output of wind turbines. An innovative force in offshore wind since its inception in 2014, the company is guided by its founding principles of collaboration, trust, technology and commitment.

About Swancor

SWANCOR HOLDING CO., LTD. has three business units at present, including the advanced materials business Group (wind blade materials and anti-corrosion materials), carbon fibre composites business group and offshore wind power business group.

For the advanced materials business group, Swancor has already provided more than 10,000 wind turbine materials installed in wind farm operations and it is the only one material supplier approved by GE, SGRE, Nordex and Acciona Windpower, Senvion, Goldwind, Envision… and other top ten wind turbine manufacturers in Asia.

For the offshore wind power business group, Swancor and its partners have a 128MW capacity Formosa I offshore wind farm, which is scheduled to be completed next year. The Formosa II capacity is 400MW, which is scheduled to be completed in 2020. Formosa III capacity is about 1,900MW, and it is expected to be constructed in three phases in 2021.