MHI Vestas Inks Landmark Supply Chain Contract in Taiwan

July 19, 2020 | Renewables | Energy Facts Staff Writer | 3min

State-of-the-art facility will deliver technical components, furthering MHI Vestas’ local supply chain footprint, and local workers will be trained in world-class manufacturing standards.

MHI Vestas Offshore Wind has signed a purchase agreement with KK Wind Solutions for local power conversion module (PCM) assembly, and local manufacturing of low voltage cabinets and uninterruptible power supply (UPS) systems to support the company’s future projects in Taiwan. The contract signing confirms MHI Vestas as delivering Taiwan’s most comprehensive local scope for offshore wind production.

The agreement also underscores the significance of bringing industry knowledge and expertise to Taiwan as KK Wind Solutions has 40 years of experience in electrical systems for the wind industry. As part of KK Wind Solutions’ investment, local workers will be hired and trained to enable best-practice knowledge transfer for highly technical offshore wind turbine components.

A production facility will be established in the vicinity of Taichung Harbour by KK Wind Solutions, and will be responsible for the assembly of the PCM, a power electronics system that is critical for converting wind energy into electricity. Low voltage cabinets and UPS systems, which ensure optimal power supply and that critical load levels are maintained in the turbine, will also be produced on the site, creating sustainable, long-term manufacturing jobs.

“Signing this agreement for local PCM assembly, and additional local supply of highly specialised components such as low voltage cabinets and UPS systems, is a major step forward for offshore wind in Taiwan,” said Robert Borin, Chief Supply Chain Officer at MHI Vestas. “A large purpose-built facility will bring clean energy jobs, industrial knowledge transfer, and an economic boost to the people of Taiwan.”

KK Wind Solutions, a global electro-mechanical systems supplier, will establish a local entity in Taiwan and engage local partners to ensure the first PCM delivery in Q4 2021.

“We are very pleased to be a strategic co-development partner with MHI Vestas. Being chosen as the supplier for the PCM manufacturing in Taiwan, we will enable a valuable and sustainable localisation setup to support the entire region,” said René Balle, KK Wind Solutions’ Chief Technology Officer & Chief Commercial Officer and continues: “The level of professionalism and commitment we have experienced from MHI Vestas and the Taiwanese Government is simply remarkable. At KK Wind Solutions, we are now ready to take a leading role in establishing the knowledge base and manufacturing footprint to ensure the long-term success of the Taiwanese offshore wind industry. Together with our local Taiwanese partners, we will enable a wind-powered future”

Contracts have now been signed by MHI Vestas in Taiwan for local supply of blades, blade materials (bonding glue, resin, pultruded carbon plates), towers, switchgear, rotor hubs, hub plates, nacelle base frames, low voltage cabinets, UPS systems, and PCM assembly with more local supply chain contracts planned for 2020.

MHI Vestas is the only wind turbine manufacturer to procure blades, blade materials, switchgear, fasteners and cables from within Taiwan.