Daewoo Shipbuilding considers China wind power plant

SEOUL (Reuters) - South Korea's Daewoo Shipbuilding & Marine Engineering, the world's second-biggest shipbuilder, said on Friday that it was considering building a wind power equipment plant in China.

Leading shipyards are entering the fast-growing wind power industry, seeking new revenue sources to offset a lingering downturn in the shipmaking business.

Shipbuilders are expected to have an edge in the emerging offshore wind power sector with their expertise in marine structures.

Daewoo earlier this year bought Dewind, a wind power turbine unit of U.S. Composite Technology Corp.

A Daewoo spokesman said the company was considering building a plant to manufacture wind power equipment in China to secure a production base in the one of the world's top wind power markets.

"We are trying to move quickly before the Chinese government tightens entry rules for foreign players," he said.

The Maeil Business Newspaper said Daewoo's planned Chinese plant could begin production at the end of 2010, citing a source at the company.

Larger rival Hyundai Heavy Industries recently began production of wind power gears at its South Korean plant.

(Reporting by Rhee So-eui; Editing by Chris Lewis)