New Delhi, June 23 (IANS) Wind turbine maker Suzlon Saturday said it will sell stake in its China manufacturing subsidiary to China Power New Energy (CPNE) Development Company for $60 million (Rs.340 crore).
"The two companies signed a binding term-sheet on June 22, 2012, for the sale of Suzlon Group's China manufacturing subsidiary -- Suzlon Energy Tianjin Limited to CPNE, with the majority of its assets and liabilities, for approximately $60 million," the company said in a statement.
According to Suzlon Group chairman Tulsi Tanti, the dynamics of the wind energy market have changed considerably over the past year, and the group is realigning its strategy to the China market with an agile, asset light business model to achieve high growth and margins but with lower investments.
"Therefore, we have decided to realign our business there, as reflected in this transaction. This is also in line with our previously announced strategy to dispose of non-critical group assets to reduce our long-term debt," Tanti said.
"We strongly believe that China will maintain its position as the world's largest wind market, and we continue to remain fully committed to China and our customers here. Looking ahead, we will approach this market by combining development with an innovative partnership model," he added.
Suzlon Group established its marketing operations in China in 2005 and followed it up by setting up a wholly-owned manufacturing facility in 2006. The company has installed over 900 MW of wind capacity in China till date.