The Danish-Japanese wind energy joint venture MHI Vestas Offshore Wind (“MHI Vestas”) has signed a contract with Taiwan’s specialty chemicals company Swancor Holding (“Swancor”) to procure the locally-manufactured blade materials.

(Image from MHI Vestas)

This comes as a move to advance MHI Vestas’ plan of increasing the localization of the manufacturing. The contract also signifies that Swancor is gaining a stronger foothold in the offshore wind sector.

The scope of the sourcing has actually exceeded the local requirement for blade materials. The direct materials value of general blade manufacturing, such as pultruded carbon plates, resin, and bonding glue are also among the supplies sourced by MHI Vestas.

How MHI Vestas Adds Value to Taiwan’s Economy

Taiwan’s economy and offshore wind industry also benefit from the direct investment as well as the technical expertise exchange.

According to MHI Vestas, this contract can shore up about 570 jobs in blade material supplies to Taiwan from 2020 to 2025.

The blade material production and induced value can increase the economic value of the Taiwanese economy by up to US$28.48 million (NT$850 million).

MHI Vestas’ Long History in Taiwan

MHI Vestas has ample experience in supplying offshore wind projects in Taiwan.

The company was the supplier to the Copenhagen Infrastructure Partners’ (“CIP”) Changfang and Xidao offshore wind farm (totaling 589 MW). In fact, CIP has awarded firm contracts to MHI Vestas, providing them with the financial advantages other suppliers do not enjoy.

Additionally, for China Steel Corporation (CSC) and CIP’s 300 MW Zhong Neng project, MHI Vestas has also achieved the status of the preferred supplier.

MHI Vestas as the first-ever wind turbine manufacturer seeking to produce its products locally

In March 2020, MHI Vestas has also signed a sub-supplier contract with Tien Li Offshore Wind Technology (TLC) to locally manufacture the wind turbines that will be deployed in the future offshore wind projects in Taiwan

This is the first-ever localization agreement made by a wind turbine manufacturer to agree to manufacture blades locally. Per the agreement, a new production plant will be built accordingly in Taichung.