Tower supply purchase agreement finalised in Taiwan
August 19, 2020
MHI Vestas Offshore Wind will source towers from CS Wind/Chin Fong partnership as purchase agreement signed, delivering on the OEM’s local ambitions.
Further positioning Taiwan at the centre of the emerging offshore wind industry in Asia Pacific, MHI Vestas has finalised a purchase agreement with the CS Wind/Chin Fong partnership to source towers for its offshore wind turbines in Taiwan.
This purchase agreement covers complete tower supply for MHI Vestas’ Taiwanese projects: Changfang Phases 1 and 2, Xidao and Zhong Neng.
Changfang Phases 1 and 2, Xidao and Zhong Neng are currently the only four Taiwanese projects to have passed the government’s localisation review for projects allocated in Round 2, as MHI Vestas continues to deliver the world’s most ambitious localisation plan in Taiwan.
“Towers being sourced in Taiwan is another positive development for the local supply chain,” said Maida Zahirovic, MHI Vestas Taiwan Business Director. “MHI Vestas’ leading localisation plan is continuing to deliver benefits for Taiwan, in partnership with local suppliers. Further volume through 2026 will be welcomed by local suppliers to achieve the best return on their upfront investments, and would be delivered with more certainty by utilising an established platform such as the proven MHI Vestas V174 technology.”
“We are pleased to be working with MHI Vestas on delivering their V174 platform offshore Taiwan," said Knud Bjarne Hansen, Co-CEO of CS Wind. “Chin Fong’s local expertise and first-rate facility is providing the foundation to enable our partnership to deliver best-in-class towers locally. This purchase agreement is the culmination of significant efforts by all parties, and we look forward to delivering our towers with consistency and quality in full support of Taiwan’s offshore wind supply chain developments.”
The conditional contract signed between MHI Vestas and CS Wind/Chin Fong in October 2018 has been concluded with this purchase agreement.
Contracts have now been signed by MHI Vestas in Taiwan for local supply of blades, 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 more local supply chain contracts planned for 2020.
MHI Vestas is the only wind turbine manufacturer to procure blades, 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
About CS Wind
CS Wind is a globalized wind tower manufacturer and has produced approx. 10.500 utility scale towers since 2003 for both onshore and offshore wind power markets. It is now operating five towers manufacturing facilities including Vietnam, China, Malaysia, the UK, and Turkey and manufacturing offshore towers in both Vietnam and the UK. CS Wind is furthermore manufacturing blade bearings in Korea and Vietnam. CS Wind has been listed on the Korean stock exchange since 2014.
About Chin Fong Machine Industrial
Chin Fong Machine Industrial is the largest maker of mechanical power presses in Taiwan and a leading provider of metal forming technologies in the world. The company was founded in 1948 with its headquarters in Changhua County. It operates four factories in Taiwan, R.O.C.: three in Changhua and one in Taichung Harbour, as well as two factories in Mainland China at Ningbo. The factory in Taichung Harbour has been operational since 2006.