Sinovel Wind Eyes $430 Million Savings After Projects Canceled

Feb 24, 2014 10:49 pm ET

Feb. 25 (Bloomberg) -- Sinovel Wind Group Co., a Chinese wind-turbine maker, plans to save as much as 2.63 billion yuan ($430 million) after canceling plans to build four wind manufacturing plants and scaling back three others.

The measures were approved by the board, the Beijing-based company said in a statement to the Shanghai stock exchange yesterday. The savings will supplement working capital.

Sinovel is cutting spending as orders decline, it said. The company said in January that its 2013 net loss would be about 3 billion yuan, partly as clients delayed payments.

Canceling the Hebei Laoting plant, the Yunnan Chuxiong plant, the Shanxi Datong plant and the Jiangsu Yancheng Port plant will save 1.7 billion yuan.

Funding will also be cut for Sinovel’s Beijing large-scale wind power research and development center, the second phase of the Yancheng Wind Energy Manufacturing Base and the second phase of the Jiuquan Wind Power Manufacturing Base. The cuts will result in 930.5 million yuan in savings.

--Ehren Goossens and Feifei Shen. Editors: Iain Wilson, Abhay Singh