Taiwan’s supply chain gains another link with transformer purchase agreement

Taipei, Taiwan, September 11, 2020

MHI Vestas Offshore Wind secures breakthrough purchase agreement to bring offshore wind transformer technology to Taiwan.

In another pioneering move, MHI Vestas will become the first turbine manufacturer to source transformer technology from within Taiwan, as Hitachi ABB Power Grids will supply transformers with key components from the Shihlin Electric & Engineering Corporation (SEEC) facility in Hsinchu County.

Continuing to deliver the world’s most ambitious localisation plan, MHI Vestas has today finalised a purchase agreement in Taiwan with Hitachi ABB Power Grids, in collaboration with SEEC, to secure transformer technology, which converts electricity to a higher voltage (66 kV) for long range transmission to shore.

The transformers will be used in MHI Vestas’ Changfang Phase 2, Xidao and Zhong Neng projects.

“As offshore wind comes to Taiwan, so too does top-of-the-line technology transfer,” said Maida Zahirovic, MHI Vestas Taiwan Business Director. “High voltage transformers are vital to ensuring that maximum electricity output reaches end consumers in Taiwan. The collaboration between Hitachi ABB Power Grids and SEEC means that world-class production is being set up locally for a critical component in the certified V174 platform.”

“We are pleased to be working with MHI Vestas on delivering their V174 platform offshore Taiwan,” said Lisa Wen, Head of Taiwan at Hitachi ABB Power Grids. “ABB has participated in Taiwan’s industrial development for the past 30 years, now we are excited to see new clean energy transition and we support Taiwan localization policy. It is a challenge to set up a manufacturing hub in a new market, but we are pleased to be working with SEEC and are hopeful of continued volume on the current technology platforms.”

“The first deliveries of transformers in 2022 will be critical for SEEC, and we are grateful for the support of Hitachi ABB Power Grids in this collaboration. They have been critical in ensuring the development of machinery for producing transformers in Taiwan and ensuring we have world-class equipment,” said Yang Tsun-Ching, Business Group Chief Operations Officer of SEEC.

Changfang and Xidao (CFXD) wind farm Chief Development Officer Marina Hsu said: “CFXD windfarm will be the first to employ MHI Vestas wind turbines with HV transformers from Hitachi ABB Power Grids and SEEC. We are proud to lead the establishment of a bankable, insurable and sustainable local wind turbine supply chain with MHI Vestas and committed Taiwanese suppliers.”

Contracts have now been signed by MHI Vestas in Taiwan for local supply of blades, transformer, blade materials (bonding glue, resin, pultruded carbon plates), towers, switchgear, rotor hubs, hub plates, nacelle base frames, low voltage cabinets, UPS systems, and PCM assembly with further local supply chain contracts planned for 2020.

At present, MHI Vestas is the only wind turbine manufacturer to procure blades, transformer, blade materials, switchgear, fasteners and cables from within Taiwan.

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. 

MHI Vestas Taiwan Supply Chain Progress

  • 15 May 2018: MoU for generators with TECO/The Switch
  • 24 March 2020: Purchase agreement for blade manufacturing with Tien Li Offshore Wind Technology Co., Ltd.
  • 28 April 2020: Purchase agreement for blade materials (pultruded carbon plates, resin, and bonding glue) with Swancor
  • 23 June 2020: Purchase agreement for high voltage switchgear with Mitsubishi Electric / Shihlin Electric and Engineering Corporation
  • 30 June 2020: Purchase agreement for rotor hubs, hub plates and nacelle base frames with Yeong Guan Energy Technology Group
  • 13 July 2020: Contracts for fasteners with Boltun Corporation and cables with Walsin Lihwa Corporation
  • 16 July 2020: Purchase agreement for PCM assembly, low voltage cabinets and UPS systems with KK Wind Solutions Taiwan
  • 19 August 2020: Purchase agreement for tower supply with CS Wind / Chin Fong
  • 9 September 2020: Purchase agreement for spinner cover and nacelle cover with Fassmer Atech Composites Taiwan Ltd.
  • 11 September 2020: Purchase agreement for transformer with Hitachi ABB Power Grids / Shihlin Electric and Engineering Corporation

About Hitachi ABB Power Grids Ltd.

Hitachi ABB Power Grids is global technology leader with a combined heritage of almost 250 years, employing around 36,000 people in 90 countries. Headquartered in Switzerland, the business serves utility, industry and infrastructure customers across the value chain, and emerging areas like sustainable mobility, smart cities, energy storage and data centers. With a proven track record, global footprint and unparalleled installed base, Hitachi ABB Power Grids balances social, environmental and economic values. It is committed to powering good for a sustainable energy future, with pioneering and digital technologies, as the partner of choice for enabling a stronger, smarter and greener grid. https://www.hitachiabb-powergrids.com

About Shihlin Electric Co.

Shihlin Electric & Engineering Corporation was established in 1955. The company has been a leader in the domestic market with advanced technology in heavy electrical systems, electrical equipment, machinery and automation for a long time. With sustained growth in revenue from domestic and overseas sources, the company has engaged in joint ventures with famous international firms. This has strengthened the capacity of the company in research and development as well as manufacturing to international standards in terms of specifications and technological know-how.