Wind turbine manufacturer MHI Vestas has signed a conditional agreement with Mitsubishi Electric Europe for the local supply of switchgear components to the Taiwanese market.

Under the new initiative, MHI Vestas has also included Shihlin Electric, a local Taiwanese manufacturer, as part of the production.

A local production contract was signed by MHI Vestas to carry out assembly as well as testing of its high voltage switchgear at Shihlin’s factory located in Hsinchu.

The first switchgear delivery is scheduled in 2022 for projects that will be installed in 2023 and 2024.

MHI Vestas co-CEO Lars Bondo Krogsgaard said: “It is clear that we’re moving aggressively with our industrial plans in Taiwan.

“Signing with industry leader Mitsubishi Electric, who will work with Shihlin Electric for local switchgear assembly, speaks to the tremendous progress MHI Vestas has made in building up the local offshore wind supply chain.”

The company also tweeted: “Happy to announce contract signing in Taiwan today for local production of switchgear. Our complete localisation activity will bring up to 5,300 jobs and €264 million in economic value to Taiwan.”

With the latest agreement, MHI Vestas currently has signed three local contracts, which include CS Wind and Chin Fong for towers and Swancor for blade materials.

The contracts were signed in October 2018 as part of formal localisation framework with Copenhagen Infrastructure Partners (CIP).

Mitsubishi Electric Corporate Executive Group senior vice-president Noriyuki Takazawa said: “To manufacture switchgear for this new industry here in Taiwan, we have selected the reputable local manufacturer, Shihlin Electric as a partner.

“We have a very strong historical link with Shihlin Electric. We are confident that Shihlin Electric and Mitsubishi Electric will successfully supply switchgear with our proven technology.”

Additionally, the partnership with the local manufacturer also fulfils the Taiwanese government’s requirements for local production.