TAICHUNG, TAIWAN — Taiwan’s renewable energy sector suffered a major setback as Tianli Offshore Wind Technology Co., Ltd. (6793), the country’s only manufacturer of wind turbine blades, announced the closure of its factory and the layoff of 470 employees. The decision came after the company’s financial sponsor withdrew investment and terminated its partnership with Danish wind power giant Vestas.
Tianli, established in 2009 with a capital of NT$650 million, was a key player in Taiwan’s wind energy industry. The company built a 21-hectare blade manufacturing plant in Taichung Port through its collaboration with Vestas. However, in May, Vestas ended its cooperation with Tianli due to changes in its global business strategy.
The end of this partnership proved devastating for Tianli, as Vestas accounted for 98% and 94% of the company’s revenue in the past two years. With no other major clients or orders, the company was forced to halt production and initiate mass layoffs.
Tianli reported that NT$37 million will be allocated for separation pay and other costs associated with the layoffs.
In addition to the shutdown, Tianli has come under fire for failing to disclose the layoff plan to the public in a timely manner. The Taiwan Stock Exchange confirmed that although the company’s chairman signed off on the mass layoff plan on December 30, 2024, Tianli did not release the information or hold a press conference as required. As a result, the company was fined NT$150,000 for violating Article 47 of the Emerging Stock Review Guidelines.
The plant closure marks a significant blow to Taiwan’s offshore wind power ambitions. Industry observers have raised concerns over Taiwan’s reliance on international partnerships and the lack of support for local suppliers in strategic sectors like renewable energy.
With the loss of the island’s only blade manufacturer, Taiwan’s wind power supply chain faces new challenges that may hinder progress in achieving long-term clean energy targets.
