Suzlon mulls Japanese JV – report

Senvion turbines at Belgium's Thornton Bank

Senvion turbines at Belgium's Thornton Bank

Suzlon may forge an alliance in Japan to tap into the country’s fledgling offshore wind sector, according to reports that were swiftly played down by the Indian group.

Chairman Tulsi Tanti said the wind group is in talks with several Japanese companies over a possible joint venture, Bloomberg wrote following an interview with the Suzlon founder.

Tanti is said to have cited the lower cost of finance and Japan’s offshore wind feed-in tariff as attractions in the country.

“You can’t ship offshore turbines, they’re too big. You have to manufacture there," Tanti is quoted saying.

The report was played down by a spokesman for Suzlon, who told Recharge "the conversation was misrepresented".

The spokesman added that Tanti had said Suzlon "may speak to companies in the US and Japan should there be opportunities, as the cost of capital and policy environment is conducive in these markets."

However, no discussions had taken place.

"As a global company we are always keen on exploring opportunities...in new and emerging markets," added the spokesman.

An alliance involving Suzlon’s subsidiary Senvion, a major supplier to the offshore industry, would continue the trend of joint ventures in the sector.

Japan’s Mitsubishi Heavy Industries (MHI) is already in an alliance with Vestas of Denmark, while Areva of France and Gamesa of Spain expect to conclude their joint venture by the end of the year.

The offshore wind business of France’s Alstom is preparing to enter a JV with GE of the US.

Suzlon is planning to partially list Senvion on the London Stock Exchange in a bid to raise up to €500m ($664m).

Note: Updates article with further comment from Suzlon

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