German trade union urges action on Chinese competition in wind sector

German trade union IG Metall and employee representatives from Siemens Energy AG (ETR:ENR) are calling for protection against unfair Chinese competition in the wind turbine manufacturing sector as unethical practices could endanger jobs and energy supply.

The German government must now take policy measures to encourage wind farm operators to adopt responsible corporate strategies and reconsider their purchasing policies, IG Metall said on Monday.

The statement was made after German renewable energy asset manager Luxcara signed a preliminary agreement to order 16 offshore wind turbines from Chinese manufacturer Ming Yang Smart for the Waterkant offshore wind project in the German North Sea. The deal marks the entry of the first Chinese suppliers into the German wind energy market, IG Metall said. This is problematic because the Chinese government heavily supports its wind energy companies, distorting competition, the trade union added.

“After the solar industry, we are putting another future technology at risk of falling victim to unfair competition,” Juergen Kerner, deputy chairman of IG Metall, noted in the statement.

Horst Hakelberg, chairman of the general works council at Siemens Gamesa, noted that unfair competition may put tens of thousands of jobs at risk. Siemens Gamesa Renewable Energy, which is wholly owned by Siemens Energy, employs around 27,000 people in wind energy worldwide, including about 3,500 in Germany. According to Hakelberg, about 300,000 employees in Europe are directly or indirectly involved in the wind industry.

The warning comes at a time when solar manufacturers in Europe are struggling under challenging market conditions. Swiss solar products manufacturer Meyer Burger said in February that it is shutting down module production at its site in Freiberg, Germany. Solar panel manufacturer Solarwatt has also signalled intentions to close a German factory. At the same time, a number of solar firms have filed for insolvency, including PV micro-inverter maker Solarnative GmbH, solar technology supplier Bosswerk and mini-PV provider Solovoltaik.

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