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Samsung Heavy to manufacture wind turbines

Samsung Heavy to manufacture wind turbines

Samsung Heavy Industries Co., the world's second-largest shipyard, plans to make wind turbines in a market estimated at US$74 billion by 2020 to counter a slump in vessel orders.
The company is scouting for a plant site and will make 200 wind turbines, with capacities of 2.5 megawatts and 5 megawatts, next year, according to an e-mailed statement today. Seoul-based Samsung Heavy aims to make 500 units a year by 2015, generating annual sales of 3 trillion won (US$2.4 billion), and may eventually raise production to as many as 1,600 units, it said.
"We plan to move into overseas wind turbine markets, including China and India," the company said in the statement.
Samsung Heavy joins bigger rival Hyundai Heavy Industries Co. in expanding its business as the global recession cuts ship demand. The South Korean government announced in August it will invest 100 trillion won in alternative energy by 2030.
The technology to make the key component for power turbines is similar to the one used for ship propellers, Samsung Heavy said. Wind power may account for 12 percent of global energy consumption in 2020, it said.
The company, which reported 10.7 trillion won of sales last year, received a letter of intent from Cielo Wind Power LP of the U.S. to provide three 2.5-megawatt wind turbines. The first will be delivered in 2010 and the remaining two the next year, Samsung Heavy said.
Ulsan, South Korea-based Hyundai Heavy said on Sept. 24 it will build a wind turbine plant in South Korea with completion expected in February 2010.