Singapore utility Sembcorp Industries has secured a foothold in China, the largest and still one of the fastest-growing wind power markets, with the acquisition of its first wind power assets in the country.
In a filing to the Singapore Exchange, Sembcorp stated that its wholly-owned subsidiary Sembcorp Utilities has acquired power assets in China worth USD 85.5 million, consisting of a 49% stake in four wind power plants in Hebei and Inner Mongolia as well as a 25% stake in a coal-fired power plant in Shanxi. These acquisitions mean that Sembcorp will have utilities operations in 11 provinces in China.
Mr Tang Kin Fei, group president & CEO of Sembcorp said "This acquisition strengthens our global energy portfolio and provides a platform to accelerate Sembcorp growth in the renewable energy sector ... Sembcorp aims to have a portfolio of high efficiency thermal and renewable power generation assets including a growing component of low carbon capacity."
Sembcorp acquired its new holdings from US company the AES Corporation. The acquisition will be funded through internal resources and is expected to contribute to earnings from its first year of acquisition.
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