Mumbai, Sept. 18: Wind turbine maker Suzlon Energy is selling a 75 per cent stake in Chinese subsidiary Suzlon Energy Tianjin Ltd for $28 million (Rs 177 crore) as the company seeks to shave off its debts by selling non-core assets.
The Pune-based company today said it had entered into an agreement with China’s Poly LongMa Energy (Dalian) Ltd to sell the stake.
Poly LongMa Energy (Dalian) Ltd is an energy conglomerate, focused on both conventional and green energy.
In a communication to the stock exchanges today, Suzlon said the first tranche of payment of the $28 million had been completed. It will continue to own 25 per cent in the company and participate in the operations as a joint venture partner.
Suzlon said Poly LongMa Energy (Dalian) would manage marketing and sales in China, while it would provide technology support for its three turbines in China.
“With this joint venture deal, we monetise an asset we have built up from 2006, and through our partner, Poly LongMa Energy (Dalian) Ltd, maintain our strong presence in the world’s largest market, which remains strategically important for us,” Suzlon Group chairman Tulsi Tanti said.
He said with the combined strength of both groups, the new joint venture would be well positioned in China and has the potential to explore exports as well.
Poly LongMa Energy’s chairman Shen Gaohua said with Suzlon’s brand name and technology and the Chinese firm’s capital and market resources, Suzlon Energy Tianjin was set to be a success.
Suzlon had earlier announced it had embarked on an initiative to divest around $400 million of its non-critical assets. Recently, the company added that the plan of selling the assets was on track.