15.11.2005: Meldung: Gamesa E?lica: Sale and Installation Agreement of 302 Megawatt

The Asian "giant’s" largest wind turbine purchase agreement


? The contracts were signed today in La Moncloa in the presence of the President of the People’s Republic of China Hu Jintao and Spanish President Jos? Luis Rodr?guez Zapatero.

? The contracts are valued at over 160 million euros

? The new factory, in stage of construction in the city of Tianjin, will occupy 100,000 m2 and represents the first stage of an investment plan of more than 60 million euro

Vitoria - Gasteiz, Spain, 14 November, 2005. Gamesa E?lica, the world’s second largest wind turbine manufacturer and Spanish leader in the manufacture, sales and installation of wind turbines, has now fully entered the Chinese market with the construction of a wind turbine factory and the signing of contracts for the installation of a total of 302 MW of wind-generated power. These latest activities represent the company’s largest wind power equipment sales commitment in the Asian giant to date.

Specifically, Gamesa E?lica has signed five new contracts with subsidiaries of the China Long Yuan Electric Power Group Corporation, which in turn belongs to the China Guodian Corporation group. These contracts call for the supply of 355 Gamesa Model G58-850 kW wind turbines to various Chinese wind farms.

It is worth mentioning that out of the 302 MW obtained by Gamesa E?lica, 202 MW were granted through a public call for tenders in competition with the industry’s main companies. This proves the competitiveness of Gamesa’s G5X 850 KW model that has been chosen in important contracts signed in Egypt, Morocco and Mexico.

This equipment will be manufactured and assembled at the plant Gamesa is currently building in Tianjin province in China, with a planned budget of over 60 million euros over the next three years.

The contract signing took place today at Moncloa Palace, in an official ceremony presided over by the President of the People’s Republic of China Hu Jintao and Spanish President Jos? Luis Rodr?guez Zapatero. Other participants included the Vice President of the China Guodian Corporation Zhu Yongpeng, and China Long Yuan Electric Power Group Corporation President Xie Changjun, along with Alfonso Basagoiti and Ignacio L?pez Gand?segui - the Chairman and C.E.O. of Gamesa respectively.

236 of the 355 contracted wind turbines will be installed at the Jilin Tongyu I and Jilin Tongyu II wind farms - both located in Jilin province. 54 wind generators will be supplied to the Gansu Yumen wind farm in Gansu. 36 additional units will go to the Heilongjiang Yichun park in Heilongjiang province, while the other 29 will be installed at the Liaoning Huanren wind farm in Liaoning province.

The contracts, valued at over 160 million euros, include the supply of wind turbines without a tower, along with the supervision of their installation and start-up. Assembly work is expected to begin in 2006 in the Jilin Tongyu I wind farm. It will continue throughout 2007 and finish in 2008 with the last wind turbine installations at the Jilin Tongyu II wind farm.

New wind turbine production plant

Gamesa is currently constructing a modern wind turbine manufacturing plant in the city of Tianjin. The new plant will have a total surface area of 100,000 m2. Tianjin is located on the eastern Chinese coast, 130 km. from Beijing - an ideal location from a logical standpoint. The plant will produce Gamesa Models G52-850 kW and G58-850 kW wind turbines.

The plant will include areas for warehousing as well as for wind turbine maintenance and service. Other special sections will be used for storing 26 m. and 29 m. blades for the mentioned models. Work on the plant is expected to finish in July of 2006, at which time the first wind turbines destined for the wind farms included in today’s contracts will begin to roll out of the production line.

The agreement was signed with Tianjin Hitech, a public corporation that manages high tech industrial development in the Tianjin area. The plant as well as adjacent facilities will be fully owned by Gamesa.

Gamesa’s new facility in China is the company’s second industrial excursion overseas. The first included three manufacturing plants involved in blade production, wind turbine assembly and tower production. These plants are currently nearing completion in Pennsylvania, U.S.A.

Production capacity for these plants will reach 400 megawatts per year - the equivalent of 470 Gamesa Model G52-850 kW and G58-850 kW wind turbines. The factory may be expanded to a capacity of over 700 megawatts per year.

Gamesa’s leadership in the Asian "giant"

These latest contracts increase Gamesa E?lica’s volume of megawatts supplied in China in 2005 to 556 MW, firmly establishing the company as a leader in the supply of such facilities in the Asian "giant" for years to come.

With 43 wind farms currently producing 764 MWs, wind-generated power is proving to be an important energy option in this Asian country, with its rapidly growing energy needs.

The Renewable Energy Law, which will take effect on January 1, 2006, is expected to give an additional boost to wind powered energy development. The government of the People’s Republic of China recently doubled its wind energy goals for the year 2020 to 40,000 MW.

Given that they avoid the emission of pollutants into the atmosphere, the wind turbines that Gamesa E?lica will be supplying to these five new wind farms will help to generate an environmentally-friendly energy supply. Specifically, the yearly production of 302 MW from these facilities will replace that of 71,492 Tonnes of Oil Equivalent (TOE)/year, thus avoiding the release of 451,500 tonnes of CO2 per year into the atmosphere.
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