Just saw this article in Recharge:
https://www.rechargenews.com/wind/were-all-in-trouble-wind-turbine-makers-selling-at-a-loss-and-in-a-self-destructive-loop-bosses-admit/2-1-1197217
Turbine Manufacturers are operating at a loss just to keep some cash flow, after building big factories then getting small orders (meanwhile using 80% Chinese components anyway).
So the next article I saw says:
https://www.rechargenews.com/wind/chinese-wind-turbine-makers-in-a-better-place-than-ever-to-start-displacing-western-oems/2-1-1196826
They say turbines can be built for ~half the price in China. And how long will it be before we just buy complete turbines from them instead of just most of the parts?
So is this good or bad for AWE? How will this affect AWE’s ability to replace modern windfarms? The end of the last article mentions tariffs as a possible solution.
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Hi Doug, the problem is the competitiveness of Chinese industrial costs in all areas. The same would be true for AWES if they ever decided to operate.
They would need something to copy.
Just a little conspiracy theory from me:
I worked in the solar PV cell manufacturing industry in Europe some years ago and we where outcompeted by China on price. But i heard from someone familiar with the solar industry in China that they might be selling cells at a loss just like we did, but that they where getting subsidies by their government just to eliminate the competition from other countries so they could take control of the market and then make a profit after they had eliminated the competition.
Maybe something similar is happening in the wind Industry? where the Chinese government is helping Chinese companies to eliminate the foreign competition to take over the market.
I’d say name a manufacturing industry that is not in this same situation.Sad to see people notice this after the fact. I’ve been watching this happen for at least 30 years now. “Hey, what happened to all our industries?” Even our California wine industry is now hampered by an inability to obtain imported empty wine bottles which have suddenly tripled in price.
Meanwhile we have our Western forests dying from imported beetle infestations, which is the real reason you see California wildfires out of control every year now. Our bees are dying (colony collapse) from imported Asian bee mites. “Murder-hornets” are now infesting our Northwest, Asian flu is killing us every year, and the Pacific Ocean is full of plastic from Asian trash ships using the ocean to dump their trash instead of handling it properly, where our gullible kids try to come up with schemes to collect the Asian trash from the ocean, while we are restricted from plastic drinking straws with the false information that all that floating plastic somehow comes from us being careless with our straws. The whole thing is so ridiculous. We’ve slowly become addicted to their cheap manufacturing, and nobody noticed until we are perhaps beyond rehabilitation. I just ordered some shoes for my girlfriend. American brand. Where do you think they came from? Now prices are over $100 for a pair of sneakers, and they will quickly fall apart.