Denmark-based LM Wind Power, which designs and manufactures blades for wind turbines, has announced the addition of a new blade factory located in Baodi in northeastern China. This is despite an ongoing investigation by the European Commission (EC) into GE’s acquisition of LM Wind Power, which could result in fines.

The location of the new blade factory is 40km from LM Wind Power’s existing plant in Tianjin. The Tianjin-based plant was established in 2001 as the first foreign wind industry company in the area.

The Baodi facility will be LM Wind Power's fourth Chinese blade plant and the company's 15th worldwide. LM Wind Power expects to create 500 jobs and start production in July 2017.

In April, GE completed the acquisition of LM Wind Power. The completion of the transaction followed regulatory approval in the European Union, the United States, China and Brazil.

GE reached an agreement with the London-based private equity firm Doughty Hanson in October 2016 to purchase the company for 1.5 billion euros (US$1.65 billion). The transaction insources wind turbine blade design and manufacturing for GE’s Renewable Energy business, improving its ability to increase energy output and create value for onshore and offshore wind customers.

LM Wind Power is being run as an individual operating unit within GE Renewable Energy, providing blades for both GE’s onshore and offshore wind business units. LM Wind Power will also continue to supply blades to the rest of the wind industry.

However, the European Commission is now reviewing the acquisition to determine whether GE filed misleading information regarding its offshore wind technology plans during the review of the deal.

During the review prior to the approval of the acquisition, the Commission’s investigation focused on the effect of the transaction both on the upstream market for the manufacture and supply of wind turbine blades, as well on the downstream markets for the manufacture and supply of onshore and offshore wind turbines.

The Commission approved the deal after concluding that it would not result in a significant reduction in competition in the EU’s single market. However, according to Bloomberg, the Commission is now examining information given by GE during the review that implied the company did not have plans for a new generation of very large offshore turbines generating 12MW, when in fact the company did have such plans. A finding against GE would result in fines being levied.

GE produces onshore and offshore wind turbines, while LM Wind Power designs and manufactures blades that are sold to GE and its competitors as a component of the turbines.

The LM Wind Power deal was the latest move from GE as part of its ambitious global plans in renewable energy. During the past year, GE delivered the first offshore wind farm in the US and won a contract for its first offshore project in China.

Photo courtesy of GE Renewable Energy.