(Bloomberg) -- Germany’s largest power producer RWE AG wouldn’t buy wind turbines manufactured in China because of concerns about the fragility of supply chains for the crucial green technology component.
“I would never buy an offshore turbine manufactured in China because it has lead times of five years,” the utility’s CEO Markus Krebber said at a conference on Friday. “What can all happen in five years?” he added, hinting to the concerns about depending on China for the critical infrastructure.
“But if you create a level playing field and invite them to set up factories in Europe under European label standards, European safety and security standards, that is positive,” Krebber added.
RWE has never bought Chinese turbines, sourcing instead from western companies like Vestas Wind Systems A/S and Siemens Energy SE. Chinese companies have raised their ambition to sell into the European market. So far they have recorded few sales, but rising prices in Europe may make cheaper Chinese turbines increasingly attractive.
Shares in Vestas jumped on the news, closing up 0.2% after earlier trading down as much as 2%. Shares in the Danish turbine maker are down more than 50% this year.
The comments come at a time of simmering trade tensions between China and the European Union. After Russia’s war on Ukraine curtailed gas flows to the continent, Germany has been sensitive to third-country influence on sectors seen as strategic, with China coming under particular scrutiny.
(Updates with Vestas shares in fifth paragraph.)
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