Middle East conflict, Chinese wind power orders are being rushed like crazy

By March 2026, amid market rumors of shipping disruptions through the Strait of Hormuz and supply concerns triggered by U.S.-Israeli conflicts affecting Qatar’s LNG facilities, China’s wind power and offshore engineering giant Dajin Heavy Industries signed an agreement: collaborating with Poland’s state-owned Szczecin Wulkan Shipyard to supply 40 core foundation components for the NordseeclusterB offshore wind project (900MW) in the North Sea of Germany.

The company’s self-built 40,000-ton dedicated deck transport vessel, the “KINGONE,” is carrying monopiles produced in bulk for the UK’s largest offshore wind project—Hornsea 3 (2.9GW)—departing from Penglai, Shandong, heading toward Europe.

TianShun Wind Power’s European offshore engineering team member saw new market opportunities and told reporters: “Europe’s offshore wind discussions have shifted from ‘carbon neutrality’ to concerns about gas supply interruptions and soaring electricity prices—that’s the fundamental difference. For us, orders have shifted from optional to mandatory, becoming something we must deliver.”

From the North Sea in Germany to the east coast of the UK, Middle Eastern conflicts have intensified Europe’s strategic anxiety over energy security. As Europe’s local supply chains show signs of fatigue under urgent demand, even facing the termination of contracts with key suppliers, China’s wind power equipment supply chain—offering cost, scale, and delivery certainty advantages—has become a “fill-in” player in this energy restructuring.

Jin Xin, Chairman of Dajin Heavy Industries, stated: “In Europe’s energy transition, offshore wind has upgraded from a ‘dual-carbon option’ to an ‘energy security necessity.’ The wind resources and installation potential in the North Sea and Baltic Sea will determine their role as Europe’s key means to reduce dependence on oil and gas.”

Order acceleration

“European clients now (when communicating with us) ask: ‘Can you guarantee delivery?’” a person responsible for international business at Dajin Heavy Industries explained to reporters. Since late 2024, amid increasing tensions in the Middle East, there has been a subtle change in the company’s frontline orders. He candidly said that European clients’ business rhythm used to be steady, but now they require “early capacity locking, early material input, and early vessel scheduling.” Procurement decision cycles, previously 3 to 6 months, have been compressed to 1 to 2 months.

This urgency is reflected in recent actions by Dajin Heavy Industries, such as signing contracts with Polish shipyards and urgently delivering projects like Hornsea 3.

The Economic Observer learned that the company’s overseas orders have exceeded 10 billion yuan, with production scheduled through 2027, and some locking-in agreements even extending to 2030.

Management revealed during a company institutional research event on January 22, 2026, that the Middle Eastern conflicts have further amplified Europe’s demand for energy independence, directly promoting the FID (Final Investment Decision) of projects like UK AR7 (the seventh round of CfD auctions, a key mechanism for long-term renewable energy price subsidies) and North Sea clusters in Germany.

Unlike Dajin Heavy Industries, Hailee Wind Power’s explosive growth reflects another aspect of global resonance. Hailee focuses on the domestic market. Its performance in Q2 2025 was nearly steep: revenue increased by 570.63% year-on-year, net profit attributable to parent increased by 315.82%, and gross margin recovered to 17.59%.

The Economic Observer learned that domestic offshore wind shipments were also rising year-on-year during the same period. Behind this are factors such as the rush to install capacity at the end of China’s 14th Five-Year Plan, as well as strong confidence in the domestic industry chain driven by Europe’s demand spillover amid global energy anxiety.

Xia Chongyao, Chairman of Oriental Cable, believes that the acceleration of Europe’s offshore wind and the insufficient local cable capacity are core drivers of the company’s overseas growth. Europe’s cable capacity is projected to be fully utilized by 2030, creating a significant supply-demand gap.

The person responsible for European offshore engineering at TianShun Wind Power told reporters that as early as Q2 2025, they noticed that German and UK clients prioritized the delivery cycle of monopiles and jacket foundations over price. By Q3 2025, EU tendering terms had quietly relaxed rigid requirements for “local manufacturing.”

These signals prompted his team to decide at the end of Q3 2025 to start establishing a base at Cuxhaven, Germany—almost a year earlier than peers. Recently, with the escalation of tensions in Iran, TianShun Wind Power’s base was approved by the board to shift from trial production to full capacity.

He said, “We didn’t just scramble at the last minute. We have been tracking this project since late 2024 and prepared for a long time.” This base, with an annual capacity of 500,000 tons of large monopiles and equipped with a port, will serve as TianShun Wind Power’s “bridgehead” for North Sea projects, “hedging” against Red Sea shipping risks.

Yen Junxu, Chairman of TianShun Wind Power, stated during an investor research event in February 2026 that the demand for monopiles and jackets is exploding, but domestic capacity cannot keep up. Chinese companies’ delivery certainty remains their core competitive advantage.

Leading in complete machines as well, Goldwind’s President Cao Zhigang revealed at the 2026 earnings meeting that Europe’s energy independence push has directly elevated order priority, with decision cycles shrinking from 3–6 months to 1–2 months, and overseas orders grew 150% YoY in 2025.

Zhang Chuanwei, Chairman of Mingyang Smart, believes that Europe’s offshore wind has shifted from a “dual-carbon” goal to an energy security necessity, with domestic capacity gaps representing a core opportunity for Chinese complete machine manufacturers.

The Economic Observer learned that Mingyang Smart has invested 1.5 billion pounds in the UK to build a full industry chain base, and has won large Middle Eastern orders such as 1,500MW projects in Saudi Arabia and the UAE. By 2026, its overseas backlog exceeded 5GW.

Filling gaps

European clients, when selecting partners, prioritize delivery capability, cost control, and localization. In cooperation with European clients, Chinese enterprises increasingly focus on enhancing their integrated “manufacturing + logistics + service” capabilities.

The person responsible for international business at Dajin Heavy Industries explained their “delivery certainty” moat in detail. First, they have built a top-tier global fleet of specialized ships; “KINGONE” and other self-owned vessels reduce per-ton transportation costs by 40% compared to third-party charters, decreasing reliance on high-risk routes like the Red Sea; second, they have established ports and cooperative capacity in Cuxhaven, Germany, and Szczecin, Poland, forming a “Chinese manufacturing, European assembly” model—meeting localization needs and shortening delivery cycles; third, they adopt DAP (Delivered at Place) all-in-one pricing, transferring transportation and delivery risks from clients.

During an investor research event at their Cao Feidian offshore base on February 3, 2026, management explicitly stated that the demand for large monopiles and jackets in Europe is surging, but local capacity cannot keep pace. Their core advantage is delivery certainty. The company’s market share in European offshore foundation components increased from 18.5% in 2024 to 29.1% in the first half of 2025, mainly due to “delivery certainty” and “technological adaptation.” Their Cao Feidian deep-sea base has passed overseas client acceptance and begun capacity ramp-up, forming a “research in Europe, manufacturing in China, assembly in Europe” collaborative system.

The person responsible for international business at Dajin Heavy Industries said that the core concept of European orders is “guarantee delivery > guarantee price.” He revealed that in September 2025, the company signed a long-term locking-in agreement for 400,000 tons with a European giant, which paid a one-time lock-in fee of 14 million euros—an upfront payment to secure exclusive capacity. He said, “This proves that our delivery capability itself is a scarce asset.”

On the cost side, steel accounts for over 80% of the total offshore equipment cost.

The person responsible for European offshore engineering at TianShun Wind Power told the Economic Observer that they lock raw material price fluctuations through contract-based price adjustment mechanisms, and have signed long-term agreements with domestic Baosteel and Hualing Steel, securing EU-grade steel at about 30% lower prices than in Europe. “Due to energy crises and high carbon taxes, European steel prices are high, but we use low-cost domestic steel and automated production lines to improve steel utilization by nearly 10%, which underpins our profit margins.”

Xiao Zunhu, Chairman of Hualing Steel, confirmed during an analyst briefing in January 2026: “We supply EU-grade wind power steel to Dajin Heavy Industries, Mingyang Smart, etc., with 3- to 5-year long-term contracts. Domestic steel prices are about 30% lower than in Europe, helping Chinese wind power companies maintain cost advantages.”

On March 1, industry news shook the European wind power circle: SeAH Wind, a domestic monopile manufacturer in Europe, was terminated by Ørsted for its UK Hornsea 3 project due to production delays and labor issues. The order gap immediately shifted to Chinese companies like Dajin Heavy Industries. This landmark event is both an opportunity for Chinese firms to fill the gap and a potential challenge ahead.

Xia Chongyao, Chairman of Oriental Cable, pointed out at a 2025 earnings conference: “We have established subsidiaries in the Netherlands and the UK, steadily advancing international market expansion and industrial layout. In 2024, overseas revenue reached 733 million yuan, a 480.54% YoY increase.” This forward-looking deployment aims to address potential supply chain gaps.

The person responsible for European offshore engineering at TianShun Wind Power admitted that Europe’s urgent supply-demand gap caused by energy transition has “opened a door” for their business, but once the situation stabilizes, the EU may tighten tendering requirements for “local manufacturing” again. This is the biggest political risk. Therefore, whether it’s TianShun Wind Power’s German base or Dajin Heavy Industries’ cooperation with Polish shipyards, fundamentally they are “buying amulets” against possible trade barriers.

Zhang Chuanwei, Chairman of Mingyang Smart, publicly stated in an interview that their European expansion is no longer just simple product exports but “deep localization.” Cao Zhigang, President of Goldwind, said in a November 2025 interview: “Chinese wind power going abroad should not be rushed. The first half is about building trust; the second half is about value co-creation. We insist on local operations in Europe and the Middle East, deeply integrating into local supply chains.”

Strategic layout

The person responsible for European offshore engineering at TianShun Wind Power candidly told reporters: “My biggest fears are threefold.”

First, fear that costs will eat into profits. Shipping around the Cape of Good Hope through the Red Sea has increased freight by 30–50%; tense Strait of Hormuz situation pushes up oil prices, which in turn raises prices for bulk commodities like steel. Although margins on European orders are high, continuous erosion is unsustainable.

Yang Zhijian, General Manager of COSCO Shipping Special Transportation, said that the Middle Eastern conflicts have caused tension on the Red Sea route, leading to a surge in demand for specialized transport for Chinese wind power companies’ overseas deliveries. They provide customized shipping solutions, locking capacity and controlling costs.

Second, they fear “backstabbing” by trade barriers. Potential EU carbon tariffs (CBAM) and local content requirements are like the sword of Damocles hanging overhead.

The management of Dajin Heavy Industries admitted during the January 22, 2026, institutional research that their response is “localize to resolve barriers, use delivery capability to stabilize market share.”

To mitigate these risks, leading companies are accelerating their local European presence, aiming to transform from “Chinese exporters” to “co-builders of European energy security.” For example, Dajin Heavy Industries collaborates with Polish shipyards, TianShun Wind Power builds bases in Germany, and Mingyang Smart is establishing full industry chain bases in the UK.

Third, they worry that some domestic tower manufacturers will compete at any cost, driving down prices and margins in Europe, leading to vicious competition. Therefore, TianShun Wind Power now only focuses on high-margin projects like ultra-large monopiles and floating foundations, avoiding low-price red ocean markets.

This anxiety pushes companies to look further ahead.

The person responsible for international business at Dajin Heavy Industries revealed that the Middle East has shifted from a “distant market” to a “strategic emerging market.” From January to February 2026, inquiries from Middle Eastern clients increased over 300% YoY, and the company has entered the bidding shortlist for projects like Saudi NEOM and others in Saudi Arabia.

Goldwind was an earlier mover, with its signed 53GW Saudi PIF project becoming a “lighthouse” for Chinese companies in the Middle East. Zhang Lei, CEO of Envision, perhaps best represents the industry consensus: “Middle Eastern conflicts accelerate the global energy rebalancing, and Chinese wind power is becoming a common choice for Europe and the Middle East.”

The person responsible for European offshore engineering at TianShun Wind Power said: “We started tracking Europe’s offshore wind capacity gap in early 2023, and by late 2024, we decided to invest in the German base—three years ahead of schedule—to ensure we can handle current orders.”

Chairman Jin Xin of Dajin Heavy Industries defined their overseas strategy as: “Deepening Europe, radiating to emerging markets; Europe is the foundation, while Japan, Korea, and the Middle East are future growth poles. Relying on European technology certification and delivery track record, we can quickly enter any high-standard offshore wind market globally.”

From cost hedging to risk anticipation, Chinese companies are striving to become “indispensable stabilizers” in this reshaping energy landscape.

The person responsible for international business at Dajin Heavy Industries said: “The core contradiction in Europe’s offshore wind is the mismatch between ‘insufficient local effective capacity’ and ‘the need for rapid installation.’ As long as this mismatch exists, opportunities for Chinese companies will not disappear.”

Source: The Economic Observer

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