China Wind Systems has been awarded a RMB1 million (US$146,000) government grant for working capital and further development of its new Wuxi City forged product facility.
The company is shifting its focus from supplying heavy machinery to the embattled Chinese textile industry, and is working to increase sales of forged rolled rings, flanges and shafts for wind turbine and gearbox manufacturers. While its 1Q09 revenues were down 31.2% on the same quarter last year, revenues of forged rolled rings exclusively for the wind power industry rose 183.4% to US$2.7 million.
The company expects to achieve US$9-12 million in revenues for its forged rolled ring business, of which wind business accounts for around a third, in the second quarter of 2009.
“We expect to continue to grow our wind-related forging business, primarily by strengthening our relationships with leading wind energy companies to supply them with large forged rolled rings and shafts,” says China Wind Systems chairman and CEO Jianhua Wu.
The RMB1 million grant was awarded by the Economic and Trade Bureau of Huishan District, Wuxi City.
City and district governments are increasingly turning to incentives such as direct grants to attract hi-tech manufacturing industries to their tax watersheds.
Earlier this year, the Chinese government tripled its 2020 installed wind energy capacity target to 100GW from 30GW. China’s wind energy installed capacity was approximately 12 GW at year-end 2008.