Sinovel Wind Group Co Ltd, China's second largest wind turbine maker by sales, has put 350 of its workers on paid leave until further notice as a drop in new orders takes its toll on the company's balance sheet, the company said in a statement Saturday.
The company's revenue fell to a record low of 548 million yuan ($87.85 million) during the third quarter, down 82.12 percent year-on-year, according to the interim report released by Sinovel on October 29. Meanwhile, its total deficit climbed to 280 million yuan over the same period.
Sinovel is not the only local wind energy firm which posted soft third-quarter results. Homegrown rival Xinjiang Goldwind Science & Technology Co Ltd, the country's leading turbine manufacturer, recorded a 32.44 million yuan loss between July and September, the first quarterly loss for the company since 2008, according to its interim data.
The earnings woes now facing China's turbine makers underscore both the domestic wind power industry's problems with overcapacity as well as the under-incentivized demand for wind equipment from power transmission enterprises, according to experts.
China's indigenous turbine makers have developed quickly in recent years thanks to Beijing's efforts to cut the country's greenhouse gas emissions.
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