China's Goldwind Signs $200 Million Wind Farm Contract In US

Xinjiang Goldwind Science and Technology Co. (XJNGF, 2208.HK) said Monday that it will build a $200 million wind farm in Illinois.

"As the largest and most competitive market in the world, the United States is a key component of Goldwind's international growth," Goldwind Chairman and CEO Wu Gang said. "Goldwind has generated a competitive global footprint and we are focused on continuing that momentum, continuing to demonstrate our technology advantages and continuing to build out our global supply chain."

The Shady Oaks wind farm project, to be located in Lee County, Illinois, about 100 miles west of Chicago, will break ground later this fall, and will generate 109.5 megawatts of power.

The announcement comes as part of a trade visit to China by Illinois Gov. Pat Quinn. A statement from the governor's office didn't specify when the project would go online.

Goldwind, China's second-largest wind turbine manufacturer, is embarking on an ambitious international growth strategy, aiming to derive 30% of its profit from overseas by 2015. Last month, the company signed a $40.5 million contract with Ecuador's state-owned power generation company, Corporacion Electrica del Ecuador, to build a 16.5-megawatt wind-power plant there.

In June, China announced it was ending subsidies for domestic wind-power producers under pressure from the Obama administration. The U.S. had long complained about a lack of transparency for subsidies in China's wind-power sector.

Separately on Monday, Quinn announced Illinois-based Archer Daniels Midland Company (ADM) will supply China with 180,000 metric tons of soybeans by December 2012, in a deal valued at $100 million.

-By Brian Spegele of the Wall Street Journal (8610) 8400-7751; [e-mail]