Suzlon looks to buy Chinese wind energy company for $500 million USD.

The company headed by Tulsi R Tanti is forging ahead with it's strategy of inorganic growth. This time it will buy Chinese company Honiton Energy Holdings. Only last year Suzlon bought REpower Systems. This time part of the deal is being funded by Arcapita, the separate joint venture which will be formed as a result is meant to help Suzlon establish a sizable presence.

The Chinese market had been one which up until recently Suzlon had had a tough time cracking. Via group ownership Suzlon will own 26 percent of the Chinese company. An estimated 2 billion USD will be spent to develop 1.65 GW of wind power in China. Suzlon's strategy relies on management centralized in the Netherlands , while taking advantage of low cost labour in India to manufacture. This is by far not the first venture of Suzlon into China, it already has a 60 million USD facility setup to make 600 MW worth of wind turbines in Tianjin.