Why are Korean Shipbuilders Hyundai,Samsung and Daewoo making Wind Turbines?

The South Korean government has heavily promoted Green Industry through a very generous Green Stimulus Program during the GFC.Korean Companies have responded by making big commitments towards this new age Green Industry as well.Samsung the largest Korean conglomerate is leading the pack investing in all major Green Sectors like Solar,Wind,LEDs etc.Other Korean conglomerates like Hyundai and LG has already started manufacturing Solar Energy Products while Hanwha has become one of the biggest solar producers through its Solarfun acquisition.Now Korean Shipbuilders  Samsung Heavy,Daewoo Shipping and Hyundai  Heavy Industries are focusing their energies on the Wind Sector.Note Samsung has a multi billion contract to develop Solar and  Wind Projects in Ontario,Canada.

Why are Shipbuilders Going rushing into the Wind Energy Sector

Korean Shipbuilders are facing the twin problems of increased competition from Chinese companies as well as a global glut in Ship Supply.They are looking to diversify away from the ship building industry into newer faster areas of growth.Wind Energy has been growing at above 20% CAGR over the last several years and makes a good area to invest in.Daewoo Shipping has bought a small firm in the USA DeWind to acquire Wind Turbine Technology while Hyundai has already made plans to open Wind Farms.With similar skills required in Offshore Wind Farms and Shipbuilding,Daewoo Shipping has set a target of $800 million from Wind Energy by 2012.Samsung Heavy the second largest Korean shipbuilder after Hyundai Heavy has started producing 2.5 MW Turbines from a  500 MW Plant  in Geoje Island in South Korea.

Daewoo Seeks 30% of Sales From Wind Power by 2020 – Bloomberg

Daewoo Shipbuilding & Marine Engineering Co., the world’s second-largest shipyard, aims to generate 30 percent of its sales from wind power by 2020 as pollution concerns spur demand for alternative energy.Daewoo, which already makes turbines, may also run wind farms, build vessels for installing offshore units and open a generator factory in China as Korean shipbuilders seek new businesses to meet competition from Chinese yards. Wind-power capacity worldwide may rise 21 percent a year through 2014, according to the Global Wind Energy Council.The company is considering plans to set up its own wind farms in Europe and North America, Koh said. Hyundai Heavy Industries Co., the world’s largest shipyard, announced plans to build a wind farm in Pakistan in January.

Samsung Heavy to manufacture wind turbines –  Taiwan News

Samsung Heavy Industries Co., the world’s second-largest shipyard, plans to make wind turbines in a market estimated at US$74 billion by 2020 to counter a slump in vessel orders.

The company is scouting for a plant site and will make 200 wind turbines, with capacities of 2.5 megawatts and 5 megawatts, next year, according to an e-mailed statement today. Seoul-based Samsung Heavy aims to make 500 units a year by 2015, generating annual sales of 3 trillion won (US$2.4 billion), and may eventually raise production to as many as 1,600 units, it said.