Suzlon Group is set to sell its stake in its wholly-owned manufacturing subsidiary in China to China Power New Energy Development Co for about $ 60 million or RMB 384.
Suzlon Group, which controls wind-turbine maker Suzlon Energy, said that it will sell its entire stake in Suzlon Energy Tianjin Ltd to the Chinese company. Suzlon has already signed a binding agreement to sell its equity stake in the subsidiary, however the deal is subject to regulatory approvals in the country.
Suzlon Chairman Tulsi Tanti said in a statement that, "This is also in line with our previously announced strategy to dispose of non-critical group assets to reduce our long-term debt. We are realigning our strategy to the China market with an agile, asset-light business model to achieve the high growth and margins but with lower investments."
Suzlon Group is the world's fifth largest wind turbine maker by cumulative installed capacity. The company had entered the Chinese market in 2005 and had set up a wholly-owned manufacturing facility in 2006. It has already installed 900 megawatts of wind capacity in country.