The move was revealed by Repower CEO Andreas Nauen at the company’s AGM in Hamburg. He said Repower was working on a strategy to exit the country.
Nauen said: "China has not desisted from its trade protectionism and continues to close off its market from foreign players. The market share of foreign players in China has continued to decline to about 10%."
He stressed that this is the main reason for the decision to exit China.
The dramatic slide in prices is another reason. The company said the price per MW for an onshore wind turbine in China has fallen to around €421,000 this year compared with around €485,000 in 2010 (exchange rate 1RMB = €0.1138). Citing data from Macquarie, it compared this with a global average of €980,000 per MW in 2011.
Last year, Suzlon chairman Tulsi Tanti said the company planned to introduce Repower's 6.1MW offshore turbine to the Chinese market. Suzlon said it had no comment when asked whether Nauen's statement would affect these plans.
Aside from a marketing office in Beijing, Repower has a 54.42% stake in Repower North (China) in Baotou, which produces wind turbines for the north China market.
It expects to conclude the sale of this stake in February 2012. In the last business year ending 31st March 2011, Repower North (China) clocked up a negative cash flow of €9.5 million.
Repower North (China) was founded in September 2006 as a joint venture with Chinese steel and engineering company North Heavy Industry Corporation and British wind project developer Honiton Energy.
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