Suzlon Group has divested a 75% stake in its Chinese subsidiary to Poly LongMa Energy, forming a joint venture while retaining a 25% ownership and continuing its role as a technology partner.

Target Information

Suzlon Group, ranked as the fifth largest wind turbine manufacturer globally, has entered into a significant agreement with Poly LongMa Energy (Dalian) Ltd, a Chinese conglomerate specializing in both conventional and renewable energy. This transaction involves the sale of a 75% stake in Suzlon's Chinese manufacturing subsidiary, Suzlon Energy Tianjin Limited (SETL), for $28 million. Following this sale, Suzlon will retain a 25% interest in SETL and will remain active in the company's operations as a joint venture partner.

Under the new arrangement, Poly LongMa Energy will oversee all marketing and sales functions within China, while Suzlon will contribute as a technology partner, providing access to its existing portfolio of wind turbines, including the S66 (1.25 MW), S82 (1.5 MW), and S88 (2.1 MW) models. This collaboration marks a strategic move for Suzlon as it seeks to continue its operational presence in the world's largest wind energy market.

Industry Overview in China

China is recognized as the world leader in wind energy production, boasting the largest installed capacity of wind turbines globally. The country's commitment to renewable energy goals, coupled with government support for green inve