25 June 2012 08:15 GMT
02 August 2013 02:37 GMT
14 August 2013 11:39 GMT
By Andrew Lee in London
Wednesday, September 18 2013
Updated: Wednesday, September 18 2013
Poly LongMa Energy (Dalian) will pay the Indian group $28m for a 75% share of Suzlon Energy Tianjin, said a Suzlon statement.
Suzlon will retain a 25% share as a joint venture partner.
Poly LongMa will lead marketing and sales in China, with Suzlon acting as technology partner for its existing portfolio, including the S66 1.25MW, S82 1.5MW and S88 2.1MW turbines, and managing manufacturing and quality.
The new Chinese owner claimed its “capital and market resources” will allow Suzlon Energy Tianjin “to renew its vigour of youth”.
In June 2012 Suzlon unveiled an agreement to sell 100% of Suzlon Energy Tianjin to China Power New Energy Development Company for about $60m.
But it has now emerged that deal never reached fruition and is superceded by the new agreement.
Suzlon chairman Tulsi Tanti said of today’s deal with Poly LongMa: “With this joint venture we monetise an asset we have built up from 2006…and maintain our strong presence in the world’s largest market, which remains strategically important for us”.
Tanti added that the JV would be in a strong enough position to explore export opportunities.
Suzlon has been engaged in a major restructuring, including the sale of non-core assets, in a bid to regain financial stability and reduce its debts.
It has already received the first payment tranche for the 75% of the Chinese unit.
Tanti said the JV deal “achieves the best possible balance” for the company, its customers and its creditors.
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