China's MingYang signs Italy wind turbine plant deal
MILAN, Aug 8 (Reuters) -China's MingYang Smart Energy 601615.SS, Italian energy firm Renexia and Italy's industry ministry have signed an agreement to set up a wind turbine manufacturing plant, the ministry said on Thursday.
The deal envisages an investment of around 500 million euros ($546 million), the ministry said in a statement, without clarifying how the cost would be shared.
The memorandum of understanding follows an announcement last week that an Italian company specialising in photovoltaic plants and a Chinese manufacturer of solar panel components had formed an alliance.
Despite the challenge of shipping large turbines, MingYang and most other Chinese producers have no production facilities in Europe.
Setting up production sites in cooperation with Chinese wind turbine and solar panel makers could prevent the loss of manufacturing skills in key supply chains, some European countries including Italy think.
"This important agreement allows us to develop turbine production in Italy and a national supply chain that will be extremely competitive," Industry Minister Adolfo Urso said in the statement.
In the next three months the partners will choose a site for the plant, which is expected to employ up to 1,100 workers.
Italian Prime Minister Giorgia Meloni visited China at the end of July to boost co-operation with the world's second-largest economy and reset trade ties after leaving the Belt and Road infrastructure investment scheme.
($1 = 0.9151 euros)
Reporting by Francesca Landini; editing by Jason Neely
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