Tower supply purchase agreement finalised in Taiwan

Further positioning Taiwan at the centre of the emerging offshore wind industry in Asia Pacific, MHI Vestas has finalised a purchase agreement with the CS Wind/Chin Fong partnership to source towers for its offshore wind turbines in Taiwan.

This purchase agreement covers complete tower supply for MHI Vestas’ Taiwanese projects: Changfang Phases 1 and 2, Xidao and Zhong Neng.

Changfang Phases 1 and 2, Xidao and Zhong Neng are currently the only four Taiwanese projects to have passed the government’s localisation review for projects allocated in Round 2, as MHI Vestas continues to deliver the world’s most ambitious localisation plan in Taiwan.

“Towers being sourced in Taiwan is another positive development for the local supply chain,” said Maida Zahirovic, MHI Vestas Taiwan Business Director. “MHI Vestas’ leading localisation plan is continuing to deliver benefits for Taiwan, in partnership with local suppliers. Further volume through 2026 will be welcomed by local suppliers to achieve the best return on their upfront investments, and would be delivered with more certainty by utilising an established platform such as the proven MHI Vestas V174 technology.”

“We are pleased to be working with MHI Vestas on delivering their V174 platform offshore Taiwan.” said Knud Bjarne Hansen, Co-CEO of CS Wind. “Chin Fong’s local expertise and first-rate facility is providing the foundation to enable our partnership to deliver best-in-class towers locally. This purchase agreement is the culmination of significant efforts by all parties, and we look forward to delivering our towers with consistency and quality in full support of Taiwan’s offshore wind supply chain developments.”

The conditional contract signed between MHI Vestas and CS Wind/Chin Fong in October 2018 has been concluded with this purchase agreement.

Contracts have now been signed by MHI Vestas in Taiwan for local supply of blades, blade materials (bonding glue, resin, pultruded carbon plates), towers, switchgear, rotor hubs, hub plates, nacelle base frames, low voltage cabinets, UPS systems, and PCM assembly with more local supply chain contracts planned for 2020.

MHI Vestas is the only wind turbine manufacturer to procure blades, blade materials, switchgear, fasteners and cables from within Taiwan.