Knocking on the door: Ming Yang sets its sights on European expansion

Ming Yang Smart Energy（明阳智慧能源集团股份公司）is leading the efforts of Chinese wind turbine manufacturers to break into the European market. In October, the company announced plans to invest up to GBP 1.5 billion in an offshore wind turbine manufacturing facility in Scotland. The facility could be operational by late 2028 and serve as a hub for the UK and European markets. This follows UK energy supplier Octopus Energy’s announcement in September that it intends to use Ming Yang hardware to deploy up to 6 GW of wind installations.

Ming Yang is the fourth largest wind turbine manufacturer worldwide, and based on offshore capacity alone, the largest Chinese manufacturer outright. The private company is looking to leverage its offshore wind technology to capitalize on projected market growth in Europe. If it succeeds, it will pose a major challenge to Europe’s wind turbine champions, particularly Siemens Gamesa, the world leader in offshore wind.

Despite dominating global manufacturing capacity, Chinese manufacturers have yet to make their presence felt in Europe, even though they can offer turbines at discounted prices and with deferred payments. Chinese manufacturers do not have any significant production facilities in Europe and their cumulative exports to Europe account for less than one percent of Europe’s wind capacity. Wind project developers in Europe have mostly avoided Chinese turbines, due to concerns over servicing capabilities and spare parts availability. Increasingly, political unease over foreign influence in critical infrastructure and market distortions are creating further complications. Ming Yang’s investment in Scotland intends to counter this trend by creating local production and jobs. 

This may be difficult. A case in point is the Waterkant wind farm project, where Siemens Energy replaced Ming Yang as a supplier following scrutiny by the German government. For its part, the EU Commission is investigating Chinese wind turbine manufacturers for unfair trade practices under the ongoing foreign subsidies regulation. While the right approach to partnering with Chinese firms in the green transition is hotly contested, the EU should not sacrifice its economic and national security as part of any collaboration. As such, Ming Yang’s expansion plans in the EU are likely to face headwinds.