Vantaa, Finland June 25, 2008 – Dong Fang Electrical Machinery Co. Ltd (DFEM) signed today a co-operation agreement with The Switch to combine the world-class technology in megawatt class permanent magnet generators (PMG) for wind power generation from The Switch with DFEM’s production capabilities to match rapidly growing market needs. The deal will provide The Switch with strong production capacity in China, while Dong Fang gains access to the marketing and customer network of The Switch, which as independent supplier offers converter and generator packages to wind turbine manufacturers in China, Europe, the Americas and other parts of Asia.
According to the specific terms of the agreement between the two companies, The Switch will provide DFEM with the production concept and technology behind its successful PMG product family. DFEM will be responsible for the production of these generators primarily at its factory in Deyang, in the southwest Sichuan Province in China.
The Switch operates as an independent player providing the technology for PMGs and full-power converters (FPC) for various OEMs and is active in China and other markets, such as Europe, the Americas and other Asian countries. DFEM, through license agreement, can serve its customers in China. The Switch will be in charge of all marketing and sales work. DFEM will handle all service and after-sales operations for all machines in China.
The DFEM factory will be able to produce up to 2,000 PMGs annually in the range of 1 MW to 6 MW. This will enable China and other countries to better meet their ambitious wind power goals in the upcoming years.
“We are bringing the world’s most advanced wind power generation technology to China through this agreement,” says Mr. Han Zhiqiao, General Manager of DFEM. “This will not only enable us to open a new segment within our domestic Chinese market, but additionally our co-operation with The Switch will give us access to new markets abroad.”
Mr. Jukka-Pekka Mäkinen, President and CEO of The Switch agrees: “Our strategy from the start has been to bring leading technology, including product design, and production from our factories in Finland aided by our local partner whose mass production capabilities allow us to match the large volume demands for alternative energy generation solutions. We have already reached a leading position in converters, and this co-operation is a natural step for us to gain a leading position also for generators.”
The joint efforts of the two companies offer a promising future: PMGs represent a winning technology, growing faster than other areas. Furthermore, the Chinese wind power market is estimated to grow from an installed base of 3,300 MW at the start of 2008 by approximately 9,000 MW per year to an estimated cumulative installed amount of over 40,000 MW by 2010, making China one of the leading countries in the world in wind power generation.
About Dong Fang Electric Corporation
Dong Fang Electric Corporation (DEC) is a China state-owned company specialized in power equipment manufacturing and worldwide power projects contracting for thermal, hydro, nuclear, wind, gas turbine, combined cycle power plant and power distribution systems. With the strong capacity and leading technology, DEC represents the power equipment industry level of China and has been nominated by the Chinese Central Government as one of the key state-owned enterprises concerning national economy. DEC consists six major manufacturing enterprises, including Dong Fang Electrical Machinery Co. Ltd (DFEM) and Dong Fang Steam Turbine Works (DFSTW). DFEM is listed on the Shanghai stock market and Hongkong Stock Exchange.