Guangwei Composites to Build USD291 Mln Inner Mongolia Plant to Tap Wind Power Market
Tang Shihua
DATE:  Jul 23 2019
/ SOURCE:  yicai
Guangwei Composites to Build USD291 Mln Inner Mongolia Plant to Tap Wind Power Market Guangwei Composites to Build USD291 Mln Inner Mongolia Plant to Tap Wind Power Market

(Yicai Global) July 22 -- Chinese carbon fiber products maker Guangwei Composites will spend CNY2 billion (USD291 million) to build a production plant in gusty Inner Mongolia with Danish wind power equipment giant Vestas Wind Systems as a major client.

The new plant will have a projected output of 10,000 tons of carbon fiber and will be located in an industrial park near Baotou city in northern China's Inner Mongolia Autonomous Region, the Weihai-based firm said in a statement on July 19. 

The desolate grasslands of Inner Mongolia make it one of China's main wind power bases. There are numerous mega-sized onshore wind farms in operation or under construction. Guangwei Composites will support Vestas in bidding to supply Baotou city with power equipment and to win preferential sales deals to ensure market expansion of the new factory's products.

Construction will be in three phases. The first, costing around CNY500 million, will build the factory and its supporting facilities with an annual production capacity of 2,000 tons of carbon fiber. It is expected to start operation in two to three years. The second and third phases will be built according to market demand and will eventually reach the target quota of 10,000 tons of carbon fiber a year.

Vestas will supply the factory layout, production technology and product distribution in the first phase, according to the deal. The Aarhus-based firm is also likely to invest in the second and third phases, but the specifics will be determined at a later stage. 

Last year, Vestas signed up Guangwei Composites as a global supplier. As part of the deal, the Weihai-based firm agreed to construct a factory in Mexico for the production of wind turbine blades, and Vestas committed to providing stable and continuous orders to the Mexico plant. 

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Keywords:   New Project,Inner Mongolia,Carbon Fiber,Wind Farm Parts,Denmark,Vestas Wind System,Guangwei Composites