Southwest Windpower expands overseas
The Arizona Daily Sun
December 11, 2008
www.azdailysun.com
By Joe Ferguson
The Flagstaff manufacturer expects sales to double in 2009 as it enters Chinese and European markets.
Building small wind turbines might prove to be recession-proof.
Local manufacturer Southwest Windpower announced Wednesday it will increase production and distribution of its turbines in order to meet growing overseas demand in the Chinese and European markets. Officials with Southwest Windpower, the world's largest manufacturer of small wind generators, say they are anticipating a 90 percent to 100 percent increase in sales in 2009. 2008 has also been a good year for the company -- it announced it has broken sales records and revenue for November nearly tripled compared with the same month a year earlier.
Southwest Windpower will partner with Yun Sheng, a manufacturing company that has been producing component parts for several Southwest Windpower products for the last four years.
The China-based joint venture -- Ningbo Air-Yun Sheng Windpower -- will produce Southwest Windpower's 400-watt Air X wind generator beginning in early 2009. Kits for the generator costs roughly $800 in the United States.
According to Southwest Windpower, more than 15 million people in China have no access to basic electricity.
Miriam Robbins, a marketing manager for Southwest Windpower, said the small generators will power a few light bulbs or a refrigerator.
Southwest Windpower CEO Frank Greco said he is confident in the Air X's ability to help residents generate power in rural areas of China.
"We've been meeting with the government agencies and testing the Air X against competitive Chinese turbines. At the end of the day, our product speaks for itself and we're very excited about our future in the Chinese market," Greco said.
Southwest Windpower projects that 10,000 to 15,000 turbines will be manufactured and sold by the joint venture in 2009.
NEW OFFICE IN GERMANY
Additionally, the company announced it has opened its first European office in Cologne, Germany. That office will manage sales, shipping and distribution of its products across Europe.
The opening of the European facility comes after a series of test installations of the company's award-winning Skystream model across Europe last year. The small wind generator is designed for utility-connected, residential use and costs between $12,000 and $18,000 when installed in the U.S.
Robbins said the Skystreams intended for the European market will be built in the Flagstaff manufacturing facility and then shipped overseas.
Greco said that this is just the beginning of Southwest Windpower's expansion.
"We are exploring opportunities in India and possibly Korea," he said. "We anticipate the demand for renewable energy solutions in both Europe and the U.S. will continue to grow."
Robbins said the expansion overseas does not immediately translate into new jobs locally. She said if demand continues to grow for the turbines, the company could add a second shift in order to meet demand.
The company has about 100 employees working in its Flagstaff plant, located on west Route 66.
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