INTERVIEW - Suzlon China output nears 70-80 pct capacity

By Kirby Chien

BEIJING (Reuters) - Suzlon Energy Ltd, the world's fifth-largest wind turbine maker, said on Tuesday that its 600 megawatt (MW) factory in China would reach 70-80 percent of capacity within the next year.

Suzlon, which began production in China in mid-2006, is keen to reach capacity within a few years to take advantage of strong demand, although government restrictions in the procurement process could limit foreign firms to a 35 percent market share, said Paulo Soares, Suzlon China's chief executive.

China, the world's second-largest energy user, will have 100 gigawatts (GW) of wind-power capacity by 2020, eight times more capacity than in 2008, and aims to increase capacity by 20 percent a year, a Chinese energy official said last month.

That is more than triple the 30 GW target the government laid down just 18 months earlier.

"We are looking at 70-80 percent capacity in the next year," Soares told Reuters in an interview on the sidelines of an energy conference.

Suzlon doubled its Chinese business in the fiscal year that ended in March, and its factory in northern China could reach capacity in the next two years.

"That would make my boss very happy," he said.

However, a tariff system that favours local producers and an opaque procurement process could mean foreign participation in the fast growing market could be limited.