MUMBAI--Suzlon Energy Ltd.(532667.BY) said Thursday it has sold its German subsidiary Senvion SE to the U.S-based private equity fund Centerbridge Partners LP for 1 billion euros ($1.16 billion) to reduce debt and focus on India and other high growth markets such as the U.S.

The wind power turbine manufacturer has a debt of more than $2 billion. It has been looking at ways to lower its debt for the past four years and one of the options was selling Senvion.

It has restructured local loans, refinanced existing expensive debt with cheaper overseas loans and has also cut jobs to stay afloat as weak demand hurt its business.

The Indian company completed the purchase of Senvion SE, formerly known as REpower, for around 1.8 billion euros in 2011 after initially taking control of the company in 2007.

Write to Debiprasad Nayak at debiprasad.nayak@wsj.com and Saurabh Chaturvedi at saurabh.chaturvedi@wsj.com

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