The Korea Trade Insurance Corporation (K-Sure), which promotes trade and overseas investment of South Korean companies, will provide financial support of $110 million to expand a wind tower plant near Ho Chi Minh City.
The expansion project will enable the CS Wind Vietnam factory to produce large offshore wind towers with a maximum diameter of 10 meters, said K-sure, South Korea’s export credit agency under the Ministry of Trade, Industry and Energy.
Through the capacity upgrading project, a total of 4 trillion won (over $3 billion) worth of offshore wind towers would be supplied by 2030, K-sure said on Thursday.
CS Wind Vietnam is a subsidiary of global wind power equipment manufacturer CS Wind, whose customers include world-leading wind turbine makers like Vestas, Siemens Gamesa, GE, and Goldwind.
About more than one hour’s drive from HCMC, the plant is located in Phu My Industrial Zone No.1 in Tan Thanh district, Ba Ria-Vung Tau province. It is the largest wind tower factory in Vietnam, also CS Wind’s first wind tower production base worldwide.
The facility started operations in 2003, equipped to produce offshore wind towers with a maximum diameter of 6.5 meters. CS Wind started to expand the plant in February to cater for rising demand.
CS Wind entered the South Korean market in March 2022 via a joint venture establishment contract for offshore wind in the market with Vestas, the world’s number one wind power generator. The partnership enabled the two companies to establish a Korean wind power generation production corporation.
CS Wind also operates production sites in mainland China, Malaysia, Taiwan, Turkey, Portugal, and the U.S., its website shows. The group claims it has so far produced over 2,300 wind towers.
In 2021, K-Sure provided financial support of $60 million for CS Wind’s wind tower factory expansion project in the U.S.