China's wind giants court European partners after UK setback

Why Europe is the hard prize

Europe buys a lot of wind kit and demand is still climbing, so Chinese manufacturers are pushing harder to get in. The catch: they have barely won any orders. Big western European projects are still going with home teams like Denmark's Vestas Wind Systems A/S and Germany's Siemens Energy AG and Nordex AG. China already dominates solar panels and batteries, but wind is the last major clean energy segment where western equipment makers still hold the edge.

The new playbook: partner up and build local

Two leading Chinese players, Ming Yang Smart Energy Group Ltd. and Envision Group, are considering teaming up with European companies to establish production operations in the region. That is the same move automakers used, including a recent deal where Ford Motor Co. and China's Geely Automobile Holdings Ltd. will produce EVs at a plant in Spain.

Speaking at the Wind Energy Hamburg trade show, Envision Energy's chief product officer, Yimin Lou, said, "We are prepared and willing to do those kinds of partnerships," adding, "Joint venture is an option." Christian Schrimpf, who serves as executive vice president overseeing offshore wind at Envision, suggested discussions may already be underway: "We might have started, but we cannot speak about it."

Horatio Evers, chief executive officer of Ming Yang's Europe division, said the company is considering joint ventures as an entry route. "Look at China, the most successful internationalization was happening based on partnership models, in the car industry as well and in the chemical industry and partly in the renewable energy industry," he said. "So why not adapt this concept to Europe as well to build up a strong alliance between Chinese and European companies?" He added that a joint venture is not the first choice, which is to build its own factory in Europe. Ming Yang hasn't started discussions with prospective partners yet, though it is still seriously considering the idea.

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Politics, jobs and security concerns

Earlier this year, on security grounds, the UK stopped Ming Yang's proposal to put £1.5 billion ($2 billion) into a Scottish turbine facility. That move excluded the company from the biggest offshore wind market beyond China and created a template that other European nations may follow.

Partnerships can help build political support. A battery plant run by Envision that supplies Renault SA in France won financing from the European Investment Bank. Still, wind hardware is more sensitive.

The sector employs thousands across European factories, and there is no guarantee Chinese-owned plants would stick around when production is cheaper at home. There are also cyber security concerns tied to sourcing critical grid-connected infrastructure from Chinese suppliers.

What to watch for your money

If Chinese turbine makers land European partners, expect a wave of local factory proposals and the political back-and-forth that follows over who gets the contracts and the jobs. Keep an eye on joint venture announcements, government reviews and financing signals like development bank backing. Those will tell you how Europe's wind supply chain might shift and where future project dollars - and delays - could show up.

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