HLS Systems moving into wind power

Beijing-based HLS Systems International (Nasdaq: HOLI), a manufacturer of automation control systems, announced plans today to enter the wind power market, saying it's in late stage discussions with some of the largest wind turbine producers in China.

HLS expects to secure a formal relationship with one or more of the turbine companies in the next few months and to begin producing wind power control systems later this year.

"The control systems used for wind power utilize some of the same key technologies in our industrial, rail and nuclear control systems and the wind business is therefore a natural complement to these existing business lines," said Wang Changli, CEO of HLS.

The company said that according to recent government statistics, the wind market in China is expected to grow to 80 gigawatts by 2020, up from just 2.2 GW of in 2005.

"Within this market, wind power control systems are virtually all imported from foreign suppliers and there is no clear market leader in China," said Changli. He said HLS is "well-positioned to become China's market leader and play a major role in China's wind energy market growth."

According to HLS, China recently enacted a renewable energy law that requires that over 70 percent of the components for wind turbines installed in the country must be sourced from manufacturers based in China.

In addition to selling automation control systems to China's nuclear, rail and industrial markets, HLS also provides environmental services, including sewage treatment and flue gas desulfurization.