(Yicai) Sept. 11 -- Dajin Heavy Industry, a major Chinese supplier of offshore wind turbine foundations, has received the first CNY1.3 billion (USD175.5 million) order under a long-term agreement it signed with a European client earlier last year.

Dajin Heavy will provide monopiles, transition pieces, and auxiliary structural components for ultra-large offshore wind farms to a European offshore wind power developer, with deliveries expected to be completed by the end of next year, the Beijing-based firm announced yesterday.

In April last year, Dajin Heavy and the European client signed a binding agreement for the latter to order up to 400,000 tons of offshore wind power foundation structural components from the former between 2024 and 2030. The client also paid a one-time lock-up fee of EUR14 million (USD16.4 million).

The fact that the client paid a lock-up fee more than a year ago and was able to place the first order only now shows that market demand for Dajin Heavy's products has remained at a high level.

The total amount of this first order is about one-third of the company's audited operating revenue last year and is expected to positively impact its operating performance next year, Dajin Heavy noted.

The European client develops, builds, and operates offshore wind power projects in countries in Europe, Asia, and North America, according to Dajin Heavy.

Since 2022, Dajin Heavy has received several orders from European customers, including four so far this year alone. Its factory in Penglai, China’s eastern Shandong province, is the only one in Asia-Pacific that can mass produce monopiles for super-large offshore wind turbines for the European market. It is also the largest monopile plant in the region.

Shares of Dajin Heavy [SHE: 002487] were trading up 1.8 percent at CNY41.34 (USD5.80) as of lunch break in Shenzhen today.

Editor: Futura Costaglione