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Saturday, June 23, 2012
Suzlon Group to sell China unit for Rs 340 crore
MUMBAI: Suzlon Group, which controls wind-turbine maker Suzlon Energy, said on Saturday it will sell stake in its China manufacturing unit to China Power New Energy Development Co. Ltd. for 3.4 billion rupees ($60 million).
Suzlon, the world's fifth-largest wind turbine maker by cumulative installed capacity, will sell the unit with the majority of its assets and liabilities, it said in a statement.
"This is also in line with our previously announced strategy to dispose of non-critical group assets to reduce our long-term debt," Suzlon Chairman Tulsi Tanti said in a statement.
"... We are realigning our strategy to the China market with an agile, asset-light business model to achieve the high growth and margins but with lower investments," he said.
Suzlon Group established its marketing operations in China in 2005, followed by a wholly-owned manufacturing facility in 2006. The company has till date installed over 900 megawatts of wind capacity in China.
Source: The Economic Times