Original Korean article: DealSite
[DealSite Reporter Lee Seung-joo] Unison has set a milestone to leap forward as a total wind power solution company by securing core technology for offshore wind turbines through a licensing agreement with Vensys, a German-affiliated Chinese company. However, as the Chinese proportion increases, market sentiment is not favorable. In the medium to long term, the company's vision of lowering capital expenditure (CAPEX) for offshore wind farm construction to gain an advantage in offshore wind turbine orders remains shrouded in uncertainty. According to the wind power industry, Unison plans to supply 25 units of 13.6MW-class offshore wind turbines to the Hanbit Offshore Wind Power project (340MW), valued at approximately 2.2 trillion won. Myungwoon Industrial Development, the project operator, is Unison's largest shareholder, and Samhae E&C, which participates as the engineering, procurement, and construction (EPC) contractor, is an affiliated company. Through this process, the company is expected to generate approximately 500 billion won in revenue.
The core technology for the 13.6MW-class offshore wind turbines produced by Unison is sourced through Vensys, a German-affiliated Chinese company. The two companies have agreed to establish a production system for 15MW-class mega turbines based on this technology partnership. Vensys was established in 2000 based on German gearless technology but was acquired in 2008 by Goldwind, China's largest wind power company, which holds a 70% stake. Vensys, which is being utilized as Goldwind's technology development hub, is focusing on technology licensing business rather than wind turbine manufacturing.
Currently, Unison is independently developing 10MW-class offshore wind turbines but is assessed to have virtually lost competitiveness in the global market. The rated output of the wind turbines itself is problematic, but as the company increases localization rates through domestic supply chains, it must accept disadvantages in terms of CAPEX. Ultimately, the collaboration with Vensys is interpreted as a measure to enhance price competitiveness and technological capability to compete with major companies such as Vestas and Siemens in overseas markets.
However, Unison's dependence on China is bound to increase. Industry reports even suggest Unison may make an equity investment in Vensys in the future. There are concerns that with design licenses and core original technology dependent on Goldwind and Vensys, Unison could eventually fall into the role of a mere vendor that simply imports and assembles components. This can be seen as abandoning technological independence and localization for short-term revenue and track records.
The domestic wind power market is trending toward increasing the proportion of non-price indicators such as domestic supply chain contribution, centered on public tenders. Going forward, localization rates and operating and maintenance costs (OPEX) are expected to determine success in offshore wind turbine orders. Compared to Doosan Enerbility, which has gradually increased the rated output of wind turbines and achieved a 70% localization rate based on 10MW standards, Unison's position is gradually disappearing.
There is also the issue that moves to exclude Chinese-made wind turbines are emerging, centered on Europe and North America. The U.S. government is imposing anti-dumping tariffs on Chinese-made wind towers and key components, and the European Commission is reportedly conducting in-depth investigations into whether Goldwind received government subsidies and allegations of single market distortion. Accordingly, Chinese wind power companies are turning their attention to emerging markets such as Central and South America, the Middle East, and Africa. In this case, Unison's strategy to penetrate European and North American markets could face obstacles. The company has memories of performing well in the North American market in the past by securing multiple track records.
In fact, Unison recorded 239.2 billion won in revenue in 2022, marking its highest-ever performance, during which North American sales accounted for 32.8% of total sales, the second highest after domestic sales at 64.1%. A market insider said, "Unison appears to be drawing a picture of securing short-term revenue through technology partnerships with Vensys and gradually increasing localization rates based on that," but added, "If the company relies solely on Chinese companies for core technology, this cooperation could actually work as poison."
