Xuzhou Construction Machinery Group (XCMG), the country's largest manufacturer of heavy construction machinery, plans to make an initial investment of 500 million yuan to diversify into wind turbine production at a time when crude oil price is going through the roof.
Wang Min, president of the Jiangsu-based company, said revenue from this new line of business will amount to about 10 billion yuan per annum in three to five years.
According to an XCMG official, a new factory will be built for the fabrication of wind turbines with production expected to commence in the latter half of 2009.
The official also said XCMG is considering licensing the wind turbine technology from US-based engineering company Windtec and Germany-based Aerodyn for around 100 million yuan.
XCMG's new venture could benefit from the Jiangsu government's efforts to promote wind farms to cut down the dependence on coal and oil to feed the province's huge industrial sector.
China plans to triple its wind power capacity over the next two years from 6,000 mW to 20,000 mW, said Song Yanqin, deputy director of research management and international collaboration division of China's Energy Research Institute.
Statistics indicate the Chinese turbine industry has now caught on, accounting for 56 percent of the newly installed wind turbines in 2007. This is vastly different from the situation a year before, when foreign manufacturers dominated the market.
Questions:
1. According to the President of the Xuzhou Construction Machinery Group how much revenue from wind turbines will be made in three to five years?
2. Production of wind turbines is expected to commence when?
Answers:
1. About 10 billion yuan a year .
2. In the latter half of 2009.
（英语点津 Helen 编辑）
About the broadcaster:
Brendan joined The China Daily in 2007 as a language polisher in the Language Tips Department, where he writes a regular column for Chinese English Language learners, reads audio news for listeners and anchors the weekly video news in addition to assisting with on location stories. Elsewhere he writes Op’Ed pieces with a China focus that feature in the Daily’s Website opinion section.
He received his B.A. and Post Grad Dip from Curtin University in 1997 and his Masters in Community Development and Management from Charles Darwin University in 2003. He has taught in Japan, England, Australia and most recently China. His articles have featured in the Bangkok Post, The Taipei Times, The Asia News Network and in-flight magazines.
