Goldwind Science Hit With EU Probe on Possible Subsidies

EU Launches Investigation into Goldwind Science for Possible Subsidies

EU Investigation into Goldwind Science

By Foo Yun Chee

Background of the Investigation

BRUSSELS, Feb 3 (Reuters) - Chinese wind turbine maker Goldwind Science & Technology was hit with an EU investigation on Tuesday as EU state aid regulators said it may have received foreign subsidies giving it an unfair advantage in Europe.

Implications for the Wind Turbine Market

The move by the European Commission followed requests for information sent in April last year to a group of Chinese suppliers of wind turbines under the EU's Foreign Subsidies Regulation which targets unfair foreign state aid.

Responses from Competitors

Europe's major turbine makers Vestas, Siemens Energy and Nordex have long urged the Commission, which acts as the EU competition enforcer, to ensure fair competition in the 27-country bloc amid a flood of cheap Chinese imports.

The Commission said its preliminary examination following the requests for information has produced indications that Goldwind may have been granted subsidies that distort the EU market.

"The Commission has preliminary concerns that these foreign subsidies may improve Goldwind's competitive position in the internal market and may negatively affect competition for the supply of wind turbines and related services in the EU," the Commission said in a statement.

Companies may offer remedies to address FSR concerns.

(Reporting by Foo Yun Chee, Editing by Louise Heavens)