Germany's largest offshore wind farm project has increased the equipment order from Chinese wind power equipment maker.
Dajin Heavy's unit Penglai Dajin Offshore Heavy Industry signed a deal with the operator of the German project to expand the initial supply deal inked in early May to EUR626 million from EUR547 million (USD682.5 million from USD596.7 million), the Beijing-based parent company announced late yesterday, without revealing the names of the developer and the project.
With the updated contract, Penglai Dajin Offshore Heavy has become the German developer's exclusive supplier, upgrading from preferred supplier, Dajin Heavy added, noting that its unit will gradually produce and deliver 105 piles and auxiliary structural parts for offshore wind power facilities for the German project from next year.
The updated deal is the largest Dajin Heavy has ever received, equal to 95 percent of the company's audited revenue last year, the firm said, adding that the deal indicates that Dajin Heavy has become one of the world’s first-class offshore wind power equipment suppliers.
The order is expected to positively impact Dajin Heavy’s future operating performance, the company pointed out.
The target project, located off Germany's North Sea coast, has a planned installed wind power capacity of 1.6 gigawatts in two stages and will use large power generators of 15 megawatts, Dajin Heavy noted. After completion, the project will supply green electricity to about 1.6 million households.
Dajin Heavy is the world's largest supplier of foundations and related structure parts for offshore wind power farms, such as wind turbine towers and pipe pile equipment.
Shares of Dajin Heavy [SHE: 002487] were trading up 0.9 percent at CNY23.56 (USD3.30) as of lunch break in Shenzhen today, after earlier gaining as much as 3.4 percent.