Xinjiang Goldwind Science & Technology, the mainland's second-largest wind turbine producer, plans to use part of the proceeds from its planned initial public offering in Hong Kong to expand overseas, which could help ease overcapacity concerns at home.
The firm would focus on selling to emerging markets in Southeast and Central Asia before targeting developed markets, although it had sold a small amount to the United States and Cuba, vice-president Li Yuzhuo said on the sidelines of the World Economic Forum yesterday.
Overseas sales formed less than 1 per cent of total sales, Li said, declining to reveal its target for the future.
'We set up an international market department three years ago, but so far we haven't had many sales,' he said. 'It will rise gradually ... One of our considerations for a Hong Kong listing is to help boost the international operation.'
As industry and government officials became increasingly worried about overcapacity in the industry, Xinjiang Goldwind cut its sales growth target to less than 100 per cent this year from more than 100 per cent in the past few years, he said.
The State Council warned late last month there were signs of overcapacity in the emerging sectors of wind power and polysilicon - a raw material for solar energy panels. It ordered banks not to lend to projects deemed redundant or of low quality.