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Wind Energy Update

22 Jul 2011 04:07:09

Wind turbine manufacturing industry building on a 'global localised' market

With new demands in emerging markets, the wind turbine manufacturing industry is seeing repositioning from the traditional centres of production from Europe to emerging market entrants in Asia and South America.

While some leading OEMs are opening production facilities in China and Vietnam, tier one manufacturers are making a significant step towards producing their components in the fast industrialised nations of China, India and Brazil. This step change in the turbine manufacturing landscape is resulting in the relationships between OEM and component manufacturer being increasingly important in order to minimise costs and continue expanding their business.

For the past couple of years the wind turbine supply chain have been about component redesign, reconfiguration of component production lines, realignment of manufacturing locations and more conservative capacity addition. While the demand gap brought about by the financial crisis has forced turbine component suppliers to downsize and refocus capacity, suppliers are now better positioned to respond quickly to the market.

The new demand coming in from countries such as China and East European regions has been causing suppliers to seek more detailed information into the way in which they can enter the market and engage with emerging and established turbine manufacturers. While established OEMs such as Vestas and Siemens have been commissioning new manufacturing plants in these emerging markets, suppliers are unsure of how to connect with large giants such as Goldwind as well as smaller wind turbine manufacturers such as Hyundai.

With this in mind, procurement and supply chain leaders will be meeting at the annual 3rd Global Wind Turbine Supply Chain Conference, taking place in Hamburg this September 7–8. This will be the largest meeting of turbine OEMs throughout the industry to date, with representatives coming from Siemens, GE, REPower, Gamesa, WinWinD, Mitsubuishi Power Systems among others, in addition to Vestas' supply chain director for Eastern Europe. For the first time organisers Wind Energy Update have ensured representatives contributing from Xinjiang Goldwind, the turbine manufacturing giant based in China speaking on the emerging opportunities for suppliers there.

Some of the key areas of discussion include:
• Understand the competing OEM strategies of vertical integration Vs global outsourcing for components
• Get unique insight into the key selection criteria of world leading OEMs
• Evaluate the manufacturing trend in Asia and determine what impact the growth from China, India and East Europe will have on the wider supply chain
• The importance of engaging early with turbine manufacturers in the design process to establish cost and lead time reduction strategies
• The impact of the massive investment into the offshore and farshore industries for component manufacturers

Will Broad from organisers Wind Energy Updated said "The conference has been created specifically to plug the gaps in supply chain knowledge, provide practical answers, and build the relationships needed to do business in this competitive arena. Attendees will be better prepared to help seize global opportunities, fend off growing competition and strengthen market position. Put simply it's an unprecedented opportunity to meet, hear from and do business with international wind turbine OEMs, large scale component suppliers, production specialists, technology innovators and supply chain experts to tackle the challenges facing the wind turbine industry head on."

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