The MHI Vestas press release below, references our economic impact assessment work, led by Alun Roberts, and its impact on the investment decision to manufacture blades locally in Taiwan.
March 24, 2020
Tien Li contract confirms MHI Vestas as first turbine manufacturer to build blades locally in Taiwan
Tien Li Offshore Wind Technology Co., Ltd. (TLC) has today finalised a sub-supplier contract with MHI Vestas to manufacture blades for turbines to be delivered in upcoming Taiwanese projects.
Building upon a Memorandum of Understanding (MOU) agreed in March 2018, MHI Vestas has signed a conditional contract with TLC for blade manufacturing in Taiwan. This is the first localisation agreement made by a wind turbine manufacturer to enable blades to be produced locally. As part of the agreement, a new manufacturing facility will be constructed in Taichung Harbour.
“The finalisation of this contract is a significant milestone for the delivery of the comprehensive industrial plan we have developed for Taiwan,” said MHI Vestas Chief Supply Chain Officer, Robert Borin. “We are proud to reach this agreement with Tien Li to deliver a critical piece of our industrial plan, by ensuring that blades for our world-class V-174 turbines are made locally. We look forward to working with Tien Li to supply our customers with Taiwanese blades.’’
MHI Vestas has been awarded firm contracts for the Changfang and Xidao projects developed by CIP (total combined capacity of 589 MW), as well as preferred supplier status for the 300 MW Zhong Neng project co-developed by CSC and CIP.
“We thank the Taiwanese government for its efforts and persistence, which has initiated and facilitated our cooperation,’ said Tien Li General Manager, Jay Hsu. ‘Blades, which are key components of wind turbines, being produced locally will stimulate the research and development of composite materials and will create numerous job opportunities in Taiwan. It is a win-win result. We look forward to our cooperation with MHI Vestas.’’
Along with transferring significant knowledge from blade manufacturing in Europe, this contract will enable MHI Vestas to bring up to 2,900 jobs in blade production to Taiwan between 2020 and 2025. The locally-created jobs will be comprised of both blade manufacturing and blade material jobs. Additionally, the collaboration between TLC and MHI Vestas will also bring up to NT$4.38b in economic value (gross value added) to the Taiwanese economy. Localisation of blade manufacturing represents nearly half of the gross value added to Taiwan currently anticipated from MHI Vestas’ involvement in-country.
For further information contact:
MHI Vestas Offshore Wind
T: +44 8455 282446
About MHI Vestas Offshore Wind
MHI Vestas Offshore Wind is a joint venture between Vestas Wind Systems A/S (50%) and Mitsubishi Heavy Industries (50%). The company’s focus is to design, manufacture, install and service wind turbines for the offshore wind industry. The company aims to create sustainable value through offshore wind power by driving capital and operating savings and increasing the power output of wind turbines. An innovative force in offshore wind since its inception in 2014, the company is guided by its founding principles of collaboration, trust, technology and commitment. For more information, see www.mhivestasoffshore.com or follow @MHIVestas on Twitter.
About Tien Li
Company Name: Tien Li Offshore Wind Technology Co., Ltd.
Date Established: December 23, 2009
Representative: Jonathan Lin, President
Capital: 50,000,000 (USD)
Address: 3rd Floor, No. 131, Section 3, Minsheng East Road, Songshan District, 105,Taipei, Taiwan
Telephone: +886 2 77337983 / Facsimile: +886 2 77337982
 Figure supplied to MHI Vestas by BVG Associates in assessment of the total number of jobs created, measured in FTE (full time equivalent) job years, including direct, indirect and induced jobs, in the localisation scope of MHI Vestas for 900 MW of volume in Taiwan, between 2020-2025. ©BVG Associates 2020
 Figure supplied to MHI Vestas by BVG Associates in assessment of the economic impact created, including direct, indirect and induced value, from the localisation scope of MHI Vestas for 900 MW of volume in Taiwan, between 2020-2025. ©BVG Associates 2020