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20-06-06, 12:34
China wind-power plant maker wants US IPO
By Alison Leung
Reuters
Tuesday, June 20, 2006; 12:53 AM

HONG KONG (Reuters) - China's largest homegrown maker of wind-power generators, Goldwind Science and Technology Co. Ltd., is pursuing a U.S. listing to bankroll an expansion aimed at driving an eight-fold increase in sales to 4 billion yuan ($500 million) by 2008.

Goldwind, based in the remote northwestern region of Xinjiang, said it is in talks with Morgan Stanley (MS.N), Goldman Sachs (GS.N), Deutsche Bank (DBKGn.DE) and Citigroup (C.N), hoping to take them on as financial advisors ahead of a listing.

But Chairman Wu Gang told Reuters in a telephone interview from Beijing the firm had not decided on a capital-raising target, nor had they set a deadline for a public float.

But Goldwind, which hopes to chalk up 1.2 billion yuan in revenue this year after more than 500 million yuan in 2005, intends to ride Beijing's growing encouragement of cleaner energy alternatives, and a nationwide environmental clean-up ahead of the Beijing Olympics in 2008.

Under China's policy of pushing renewable energy -- to reduce a heavy reliance on polluting fossil fuels for power generation -- Goldwind's turnover has doubled in each of the past seven years and has been making "decent profits," Wu said.

"Wind power companies need strong financial backing, a clean public image and a good brand," Wu said, explaining the reasons for a listing.
China aims to have 30 gigawatts of installed wind power capacity by 2020, versus just 1.26 gigawatts last year, he said.

That's why competition is heating up at home with a dozen or so foreign players vying for a slice of the booming market, including global leader Vestas Wind Systems (VWS.CO), Spain's Gamesa (GAM.MC) and India's Suzlon Energy Ltd. (SUZL.BO).

With total assets of just 600 million yuan, Goldwind nonetheless made 27 percent of the wind power generators sold in China in 2005, Wu said.
"We are striving to catch up on the technology front with international peers, hopefully in three to five years."

($1=8.001 Yuan)