WORLD WINDMAKERS FACE COMPETITION
Gamesa Falls Most Since July After UBS Downgrades Wind Manufacturers
Randall Hackley, April 7, 2011 (Bloomberg News)
"…[Gamesa Corp. Tecnologica SA] slid as much as 7.6 percent [as UBS AG cut Spain’s largest wind-turbine maker to “sell” from "neutral"]…while Vestas Wind Systems A/S, also downgraded from “neutral” to “sell” in the UBS report, dropped as much as 4 percent…[Though the both saw] a share rise this year…[UBS said] there is no improvement in fundamentals…
"…Compounding the pricing pressure on European wind manufacturers is…increasing competition from Chinese producers…[and] no top-line growth in the European and North American market…"
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"Vestas, the world’s largest maker of wind turbines, and Munich-based Siemens AG (SIE) are competing for supremacy in the offshore wind market. Of the 3,045 megawatts of installed sea- based wind capacity in Europe by the end of last year, 1,391 megawatts are from Vestas machines while Siemens has 1,357 megawatts…[T]he UBS report said… it preferred [Chinese windmaker] Goldwind over the Europeans…Xinjiang Goldwind Science & Technology Co., China’s second- biggest maker of wind turbines, rose 1.2 percent…
"U.S. and European wind-turbine makers, including Vestas and General Electric Co. (GE), are shifting manufacturing to Asian countries that have lower labor costs, higher margins and faster-growing domestic markets…Last week [Vestas] unveiled a new 7-megawatt wind turbine aimed at helping vie with Siemens for the biggest share of the offshore wind power market…"
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"…New installations of offshore wind turbines may surge 70 percent this year, topping 2010’s record 51 percent gain…Gamesa, GE and Siemens have announced plans for U.K. offshore turbine manufacturing and research hubs to cater to demand created by the country’s third round of seabed licensing.
"The global offshore wind-power market could be worth as much as 170 billion pounds ($277 billion) a year by 2050, the U.K. government-funded Carbon Trust said last week. It said Britain is likely to take about 10 percent of the market."