MHI Vestas has confirmed a deal with Tien Li Offshore Wind Technology (TLC) to manufacture blades for turbines to be delivered on upcoming Taiwanese projects.
The contract represents the first localisation agreement made by a wind turbine manufacturer on the island, the Danish company said.
A new manufacturing facility will be constructed in Taichung Harbour as part of the agreement.
MHI Vestas chief supply chain officer Robert Borin said: “The finalisation of this contract is a significant milestone for the delivery of the comprehensive industrial plan we have developed for Taiwan.
“We are proud to reach this agreement with TLC to deliver a critical piece of our industrial plan, by ensuring that blades for our world-class V-174 turbines are made locally.”
MHI Vestas has been awarded firm contracts for the Changfang and Xidao projects developed by Copenhagen Infrastructure Partners with a total combined capacity of 589MW, as well as preferred supplier status for the 300MW Zhong Neng project.
TLC general manager Jay Hsu said: “We thank the Taiwanese government for its efforts and persistence, which has initiated and facilitated our cooperation.
“Blades being produced locally will stimulate the research and development of composite materials and will create numerous job opportunities in Taiwan. It is a win-win result.”
Along with transferring significant knowledge from blade manufacturing in Europe, the contract will enable MHI Vestas to bring up to 2900 jobs in blade production to Taiwan between 2020 and 2025.
The locally created jobs will be comprised of both blade manufacturing and blade material roles.
The collaboration between TLC and MHI Vestas is set to deliver up to $4.38bn in economic value to the Taiwanese economy, according to research from BVG Associates.
Localisation of blade manufacturing represents nearly half of the gross value added to Taiwan by MHI Vestas’ involvement in the country, BVG said.