China WindPower Plans to Spin Off Tower Manufacturing Business
Stock Chart for China WindPower Group Ltd (182)
China WindPower Group Ltd. (182), a Hong Kong-listed Chinese wind power company, plans a spin-off listing of its manufacturing units of wind-turbine components in the city.
Tianhe New Energy Equipment Ltd., the holding company of China WindPower’s tower-tube manufacturing business, has applied for a listing on the Hong Kong stock exchange, according to a filing to the city’s bourse today.
“This spin-off is part of our expansion plan,” Chairman Liu Shunxing said in a press conference in Hong Kong today. “We feel that the tower tube segment has a lot of potential.”
China emerged as the world’s biggest wind-energy market by installed capacity, having overtaken the U.S. last year, Global Wind Energy Council data show. At the end of 2010, China had a total of 42.3 gigawatts of wind power capacity compared with 40.2 gigawatts for the U.S.
Chief Financial Officer Hu Mingyang declined to comment on the estimated amount of funds to be raised from the spinoff or the banks responsible for the listing.
Tianhe, a wholly owned subsidiary of China WindPower, will remain a unit of the company after the proposed listing, the statement said.
Full-year sales of the tower-tube business in 2010 were HK$591.4 million, or 48 percent of China WindPower’s total revenue, according to the company’s annual report.
The company aims to develop 1 gigawatt offshore wind farms by 2015, Yu Weizhou, an executive director, said at a conference in Shanghai on June 15.
“Tianhe also plans to gradually expand into solar-energy related equipment manufacturing business,” Liu said today.
-- With assistance from Marco Lui in Hong Kong. Editor: Allen Wan
To contact the reporter on this story: Michelle Yun in Hong Kong at Myun9@bloomberg.net
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