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DSME looks to wind energy to propel sales

Seoul: The world's second-largest shipyard, Daewoo Shipbuilding & Marine Engineering Co, is aiming to generate 30% of its sales from wind power by 2020 as pollution concerns spur demand for alternative energy, writes Bloomberg.

The company expects to generate as much as 9 trillion won ($7.5bn) in wind-power sales in 2020, from about $25m this year, Chief Strategy Officer Koh Young Youl said in an interview in Seoul. The company earned 99% of its revenue from building ships and offshore equipment last year.

"It's a very ambitious target and it won't be easy," Koh said yesterday. "Still, the market potential for wind power is very big, partly because there's a lot of interest in going offshore as the space on land runs out."

Daewoo, which already makes turbines, may also run wind farms, build vessels for installing offshore units and open a generator factory in China as Korean shipbuilders seek new businesses to meet competition from Chinese yards. Wind-power capacity worldwide may rise 21% a year through 2014, according to the Global Wind Energy Council.

"It is our plan to eventually be able to provide a full chain of services for wind energy -- from making turbines to operating mills," Koh said. The Seoul-based shipyard is developing its first offshore wind turbine, he said.

The shipbuilder's wind-power sales may reach $800m in 2012, Koh said. The company in January said the company's sales will likely reach 12.4 trillion won this year.  [26/08/10]

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