MHI Vestas Offshore Wind continues to deliver on localisation commitments in Taiwan
June 30, 2020
MHI Vestas deepens local offshore wind supply chain linkages with agreement to source multiple key turbine components from Taiwan-based Yeong Guan Energy Technology Group (YGG).
MHI Vestas has signed a purchase agreement with local Taiwanese company, YGG, to source additional components for upcoming production of V174 turbines to be installed offshore in Taiwan. The agreement covers rotor hubs, hub plates and nacelle base frames.
V174-9.5 MW turbines provided by MHI Vestas are due to be installed at the Changfang and Xidao projects off the coast of Taiwan, under development by CIP, beginning in 2022.
“We consider Taiwan to be a key market for offshore wind, and we look forward to advancing the sustainable development of the supply chain by partnering with local companies,” said Maida Zahirovic, Taiwan Business Director at MHI Vestas. “We are working hard to deliver on the Taiwanese government’s ambition to be an offshore wind hub in Asia-Pacific, and we are delighted that YGG will be supporting us on this journey.”
YGG plans to invest over NT$ 5 billion at its facility in the port of Taichung to support the production of rotor hubs, hub plates and nacelle base frames in MHI Vestas’ projects. A new production line was set up to support the Changfang and Xidao projects, as YGG prepares to supply components to the Taiwanese market as part of MHI Vestas’ proven V174 turbine.
“With this purchase agreement, we look forward to working together with MHI Vestas on the delivery of the V174 turbine castings in Taiwan and more widely in Asia-Pacific,” said Andy Tsai, Vice Chairman at YGG. “We are well-prepared to deliver rotor hubs and nacelle base frames to MHI Vestas’ V174 turbine, due to substantial investments in our facilities and our wealth of experience. We are proud of the progress we have made, and require consistency in turbine technology to achieve return on our investment, which will ultimately support the sustainable development of the local offshore wind sector in Taiwan.”
In addition to this contract with YGG, MHI Vestas has signed firm purchase agreements for critical components such as blades, switchgear and blade materials (bonding glue, resin, pultruded carbon plates), and has also signed a contract in Taiwan for tower supply.
Further supply chain contracts are expected for 2020, as MHI Vestas delivers on its intentions to meet localisation requirements set forward by the Taiwanese government.
About MHI Vestas Offshore Wind
MHI Vestas Offshore Wind is a joint venture between Vestas Wind Systems A/S (50%) and Mitsubishi Heavy Industries (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 Yeong Guan Energy Technology Group
YGG, with its roots in Taiwan, is headquartered in Ningbo, Zhejiang Province, China. In 1995, its first foundry was established in Dongguan, Guangdong Province, China. Now, YGG has expanded to six foundries, two precision processing bases, one steel structure production base and one steel scrap recycling plant, forming a vertically integrated secondary metal processing group. YGG has more than 2,200 employees with an annual capacity of more than 210,000 tons. YGG has become a benchmark for the casting industry in China.