Tien Li Offshore Wind Technology Co (TLC) has finalised a sub-supplier contract with MHI Vestas to manufacture blades for turbines to be delivered for upcoming Taiwanese offshore wind projects
Building on a memorandum of understanding agreed in March 2018, MHI Vestas has signed a conditional contract with TLC for blade manufacturing in the country.
This is the first localisation agreement made by a wind turbine manufacturer to enable blades to be produced locally. As part of the agreement, a new manufacturing facility will be constructed in Taichung Harbour.
MHI Vestas chief supply chain officer Robert Borin said, “Finalisation of this contract is a significant milestone for the delivery of a comprehensive industrial plan we have developed for Taiwan… and will ensure that blades for our V174 turbines are made locally.”
MHI Vestas has been awarded firm contracts for the Changfang and Xidao projects developed by Copenhagen Infrastructure Partners (CIP). The projects have a combined capacity of 589 MW. The company is also preferred supplier for the 300-MW Zhong Neng project co-developed by CSC and CIP.
Along with transferring significant expertise from blade manufacturing in Europe, the contract will enable MHI Vestas to bring up to 2,900 jobs in blade production to Taiwan between 2020 and 2025.
The locally-created jobs will include blade manufacturing and blade material jobs.
Collaboration between TLC and MHI Vestas will also bring up to NT$4.38Bn (US$145M) in economic value (gross value added) to the Taiwanese economy.
Localisation of blade manufacturing represents nearly half of the gross value added to Taiwan currently anticipated from MHI Vestas’ involvement in-country.