Suzlon to open Brazil factory
Indian wind turbine group Suzlon plans to open a factory in Brazil as it targets a share of the growing market there and in the wider Latin American region.
Suzlon aims to establish the plant over the next year and a half, but has not yet chosen a location and few further details were immediately available on the factory – its first in Latin America.
The decision by the Indian group to open a plant was confirmed by company representatives, and is a big vote of confidence in the regional market.
It was reported that the facility will have an initial capacity of 400MW and require an investment of up to $50m, although those figures were not confirmed by Suzlon.
Suzlon won more than 700MW of orders in Brazil up to 2009 but has since struggled to maintain that momentum and was widely tipped to be poised to quit the market altogether.
However, Suzlon chairman Tulsi Tanti has made it clear that after spending several years restructuring its finances, it is eager to resume a growth trajectory at home in India and in key foreign markets.
Tanti revealed the factory plan during a visit to Brazil, where he was taking part in the BRICS summit.
Suzlon – which also owns the Germany-based turbine producer Senvion – would join other major foreign groups in basing production locally to help meet Brazil’s strict local-content rules.
Acciona, Alstom, Gamesa, GE and most recently Vestas have all committed significant resources to the Brazilian supply chain.
Brazil and the wider region are seen as offering some if the strongest growth prospects for turbine vendors over the next decade.