China High Speed Transmission Equipment Group, the world's second-largest maker of gearboxes for wind turbines, aims to take the No 1 position by the end of the year, as it raises output by half. The Nanjing-based company has upgraded its capabilities to turn out gearboxes for a total of 9,000 megawatts of installed wind turbines this year, after manufacturing enough for 6,000 MW last year. It aims to move up the scale to produce gearboxes for a total of 12,000 MW next year. 'All the orders for next year's 12,000 MW of units have been confirmed,' said chairman Hu Yueming. He would not say if the company has plans to increase its capacity further. 'Given our already high production scale, the possibility of our being able to grow by 50 per cent, 100 per cent, as in the past is not big,' he said. 'Going forward, we will not only seek growth in quantity but also expansion in product offerings,' he said, adding the firm plans to launch computer-controlled equipment that makes high-end heavy machine tools next year. He also expects sales growth to be partly driven by transmission equipment for steel mills in emerging markets like India and Brazil. Wind turbine gear boxes accounted for 70.9 per cent of first-half sales. The rest was mainly from railway, marine, construction materials and metallurgical sectors. Hu said China High Speed was the world's second-largest maker of wind turbine gearboxes by installed power capability sold last year, and it will 'very likely' take the top position this year. He did not name its bigger rival, but Belgium-based Hansen Transmissions is a leader in megawatts of installed power, with a plan to raise annual output from 7,300 MW last year to 14,300 MW by 2013. Besides facilities in Belgium, Hansen plans to have annual capacity of 4,300 MW in its Indian plant by 2013. Capacity at its assembly and testing plant in Tianjin is planned to reach 3,300 MW, according to Hansen's website. China High Speed on Monday posted a 55 per cent year-on-year jump in underlying first-half net profit to 516.6 million yuan (HK$589.84 million), which excludes gains and losses related to convertible bonds and an equity swap. Turnover surged 52.3 per cent to 3.1 billion yuan, while gross profit margin edged down to 30.4 per cent from 31.1 per cent. Hu said he is confident the second-half margin will remain at a similar level to that in the first-half, adding that despite rapidly falling turbine costs due to keen competition, China High Speed managed to protect its margin by raising sales of higher-end products. China High Speed recently signed up a new customer in India, which ordered 100 1.5 MW gearboxes.