Siemens Gamesa intends, together with Taiwan-based suppliers, to expand its nacelle assembly facility in Taichung to create a regional offshore wind nacelle industrial hub.
The first project to be supported by the broader manufacturing plant will be the 300 MW Hai Long 2 project.
The expansion is subject to certain conditions including the acceptance by the Taiwanese authorities of Hai Long 2’s Industrial Relevance Proposal (IRP), and the final investment decision by the project partners.
Siemens Gamesa was named as preferred supplier for the offshore wind turbines in November 2019.
The facility is currently under construction and will begin production in 2021 to supply nacelles to Orsted’s Greater Changhua 1&2a offshore wind power project.
Once the assembly work for the nacelle is complete in 2022, the expansion of the Taichung factory will begin. This will involve doubling the plot area to more than 60.000 square meters and at least doubling the number of Siemens Gamesa workers employed in the factory.
Two new production halls and a new warehouse will be built for Siemens Gamesa’s latest offshore wind turbine technology, including local hub and backend production in Taiwan.
It would open up a compelling opportunity for a wide variety of local manufacturers to feed products directly to the factory, due to the high proximity and fast transport time to Taichung.
“Our actions to localize and expand nacelle manufacturing in Taiwan demonstrate our strong beliefs in both the Taiwanese market and the Asia Pacific region as a whole. Supported by proactive policies, strong wind resources, and a proven contribution to combating climate change, offshore wind is an essential element in the energy mix around the globe.”Andreas Nauen, CEO of the Siemens Gamesa Offshore Business Unit.
Siemens Gamesa and Yeong Guan Group (YGG) signed an agreement for Hai Long 2 on localized hub and base frame castings in 2019. YGG will build a new global casting factory for offshore wind in Taichung, neighboring Siemens Gamesa’s plot.
Additionally, Siemens Gamesa has signed four conditional contracts for the localization of six different type of nacelle components for Hai Long 2. All these components will be shipped to the Taichung factory as part of the production process for the localized nacelle.
Similar to the YGG deal, three of those contracts require the development of new local production facilities:
- KK Wind Solutions will invest in a new production plant in Taiwan, as well as in the recruitment and the training of a local workforce to enable knowledge transfer. The factory will manufacture uninterruptible power supplies and power conversion systems.
- SINBON will extend its existing footprint with a new production line in Taiwan for cable manufacturing.
- Atech, together with an existing global supplier, will provide nacelle canopies and spinners. A new production line will be set-up in Taiwan accordingly. This collaboration will combine strong offshore wind expertise with local market knowledge and production capabilities.
- Würth will leverage its existing footprint in Taiwan and strong local supplier network to locally procure fasteners.
“We are very glad to announce the reinforcement of our local supplier footprint with four very experienced wind component manufacturers, and a local company. We are confident that they can contribute to our vision to create a greater industrial hub in Taiwan, as a foundation for future exports, and we are looking forward to work with them on the Hai Long 2 project.”Niels Steenberg, executive general manager of Siemens Gamesa Offshore for Asia-Pacific.
“Our selection of Siemens Gamesa as preferred supplier not only makes sense commercially for the project but also strategically for Taiwan. Hai Long’s IRP places specific focus on the export capability of the local supply chain. Our construction and operation timeline allows us to look at new technologies that will be state of the art within APAC. On top of that, local talents will be trained as we go. Hence, through Hai Long as the Anchor Project, Taiwan will truly become the APAC Offshore Wind Export Hub for new technology, service, and talents.”David Povall, executive vice president for development at Northland Power.