Olympic Project Wind Farm, Beijing, China.(LM photo)

LM, based in Kolding, Denmark, said the new plant making fiberglass-reinforced plastic blades in Qin Huang Dao, Hebei province, is planned to eventually be the company’s largest factory in China.

A company spokeswoman declined to reveal details of the factory’s production capacity, but said the company has agreements to supply blades totaling 1,100 megawatts of power for Goldwind’s 1.5 megawatt turbines by 2012.

The new agreement LM signed with Goldwind, based in Urumqi, Xinjiang province, will be a “significant increase” in shipments from when the two firms started working together in 2007, LM said. The Danish firm also has factories in Tianjin City and Xinjiang province in China.

LM has not seen any dips in the Chinese wind market, in contrast with Europe, the United States and India, where the firm has seen markets suffer as the economy has delayed wind power projects, said spokeswoman Helle Larsen Anderson.

“There hasn’t been any decrease in the activities in China,” she said. “China is a high potential, high demand wind market.”

LM laid off 600 workers at factories in Europe and the United States in early 2009, amid overcapacity concerns, but the company said it still sees long-term potential in wind markets worldwide as efforts grow to reduce global warming and boost energy independence.

All of the LM’s Chinese production is used in China, as it is not cost effective to ship wind turbine blades, she said. Asia, including China and India, currently accounts for 15 to 20 percent of revenues but that share is expected to grow, she said.

LM, with 7,000 employees and 14 factories around the world, says it makes about 25 percent of the world’s wind turbine blades.

A September report from consulting firm Frost & Sullivan said the economic slowdown, and the lag between production and wind turbine delivery, will mean 2010 will see cuts in revenues in the wind industry as orders fall.

The report said some companies have shut production in lower-growth areas like the United Kingdom. and Denmark and are ramping up in China and the United States.