Hollysys Automation Technologies Enters China's Wind Market – Focused on Producing Proprietary Wind Power Control Systems
Aug 8, 2008
BEIJING & HANGZHOU, China – Aug 8, 2008 – Hollysys Automation Technologies (NASDAQ: HOLI) ("Hollysys"), announced today that it is in late stage discussions with some of the largest wind turbine producers in China to provide their critical automation control systems. Hollysys expects to solidify a formal relationship with one or more of these companies in the next few months and expects to begin producing wind power control systems later this year.
Dr. Wang Changli, Hollysys' CEO commented, "We are excited to announce our entry into China's surging wind turbine market. The control systems used for wind power utilize some of the same key technologies in our industrial, rail and nuclear control systems and the wind business is therefore a natural complement to these existing business lines.
According to recent PRC government statistics, the wind market in China is expected to grow to 80GW by 2020, up from just 2.2 GW of output in 2005. To help reach this target, China recently enacted The Renewable Energy Law that requires state owned utilities to purchase all of the energy generated from wind farms at fixed, long-term competitive rates. This policy also requires that over 70% of the components for wind turbines installed in China must be sourced from manufacturers based in China. This new policy has provided additional incentives to develop wind farms in China and is expected to generate substantial demand for wind turbines in China and accelerate the overall growth in China's wind energy market.
Within this market, wind power control systems are virtually all imported from foreign suppliers and there is no clear market leader in China. By virtue of our proprietary automation control technologies that have been proven and used extensively in industrial, rail and nuclear power applications, we are well-positioned to become China's market leader and play a major role in China's wind energy market growth."
Hollysys Automation Technologies, based in Beijing, China, with 1,800 employees, is the leading domestic provider of automation control systems to China's surging nuclear, rail and industrial markets and will soon begin providing control systems to China's booming wind energy market. Hollysys has developed a series of proprietary high quality, low cost control systems that meet or exceed international standards and is able to effectively compete against the world's leading automation control companies.
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