"Project Investment Agreement" signed
On the 15th of November we have signed a “Project Investment Agreement” with “Jiangsu Jintan Economic Development Zone” in China to establish complete manufacturing of Cast Resin Transformers.
This is in line with the strategic growth plan of the BU Dry following a very successful 2 years operation of the SGB Transformers (Yancheng) Co. Ltd trading company on the market. During the 2 years BU DRY has collected well over the targeted order backlog in a total value of a double-digit million € range.
Obtaining these orders SGB has reached a substantial market share in the rapidly growing offshore wind industry in China for year 2019. This solid base qualifies us for the investment into a full scope manufacturing facility to benefit on a long-term basis of the growing market in China. While the production facility is established in China, we will be strengthening our competitive position for our global wind customers in China.
The production floor is approx. 5200 sqm, with an adjacent 2 storey office building. Completing the ramp up the factory plans to employ 90.
The production will ramp up in several steps, in the 2nd quarter of 2019 the assembly and testing will start up. The complete manufacturing process (winding and casting included) equipment installation is expected in Q3 2019 and will gradually ramp up to its planned capacities during the year 2020.