American Superconductor Corporation (NASDAQ: AMSC), a leading energy technologies company, and Shenyang Blower Works (Group) Co., Ltd. (SBW), a leading Chinese industrial equipment manufacturer, signed an agreement today for co-development work that positions SBW to become a leading supplier of wind turbines for the Chinese marketplace. The contract was signed today in a ceremony involving the chief executive officers of the two companies at SBW headquarters in Shenyang, China.
Under the terms of the agreement, AMSC’s wholly owned AMSC WindtecTM subsidiary will provide SBW with designs for its 2 megawatt (MW) doubly fed induction wind turbine. AMSC will also help SBW localize the supply of all core components for the wind turbines, establish its wind turbine manufacturing line and build and test SBW’s first prototype wind turbines. After receiving certification, SBW will manufacture the turbines and sell them primarily into the Chinese market. AMSC will provide the full electrical systems for all of SBW’s wind turbines.
Founded in 1934, SBW is a state-owned enterprise that provides a wide array of industrial equipment including large-scale compressors, blowers, fans, heat exchangers as well as large-scale nuclear power pumps, boiler feed pumps and petrochemical pumps. The company has more than 5,700 employees and approximately US$1 billion in annual sales.
“As one of China’s largest providers of large-scale industrial equipment, our company is well suited for the wind power equipment manufacturing market,” said Su Yongqiang, Shenyang Blower Works president and chief executive officer. “After conducting an extensive search among competing firms, we selected AMSC because of its superior wind turbine designs, its extensive experience in China and its broad level of support. In addition to manufacturing complete wind turbine systems, we plan to be highly vertically integrated, which will enable us to scale production faster and offer our wind turbines at very competitive prices. By integrating our company’s experience with AMSC‘s unique capabilities, we plan to become a major participant in China’s growing wind power market.”
This co-development agreement provides SBW with the right to manufacture its 2 MW wind turbines in China and sell the systems globally. The company plans to have its first prototype turbines installed and commissioned in 2009 and expects to begin series production in 2010.
“The Chinese government continues to rapidly develop wind farms and to strongly support and finance the further expansion of zero-emission, wind-generated electricity to ensure an abundant supply of electricity and enhance the quality of life for its workforce,” said Greg Yurek, founder and chief executive officer of AMSC. “We are pleased to partner with Shenyang Blower Works, one of China’s most respected enterprises, to co-develop their first wind turbine. Shenyang Blower Works’ strong existing ties to all of China’s five state-owned electric utilities position this firm to swiftly capitalize on the rapid growth of China’s wind industry.”
According to the Chinese Wind Energy Association, China will grow its base of wind power from 5.9 gigawatts (GW) at the end of 2007 to more than 10 GW in 2008. In its Global Wind Energy Outlook 2008 report, the Global Wind Energy Council estimates that China’s installed base could grow to 101 GW by 2020 under its “moderate” outlook scenario and 201 GW under its “advanced” scenario.
To learn more about AMSC’s product offerings for the wind industry, please visit http://www.amsc.com/products/applications/windEnergy/index.html.
Established in 1934, Shenyang Blower Works became the first enterprise to specialize in producing compressors, blowers and fans in China. The company’s products are mainly applied in the fields of petroleum, chemical, natural gas transportation, metallurgy, air separation, civil work, pharmacy, acid-making, environmental protection, textile, and scientific research of national defenses, etc. The products have also been exported to twenty five countries and regions. More information is available at www.sbw-turbo.com.
AMSC is a leading energy technologies company offering an array of solutions based on two proprietary technologies: programmable power electronic converters and high temperature superconductor (HTS) wires. The company's products, services and system-level solutions enable cleaner, more efficient and more reliable generation, delivery and use of electric power. AMSC is a leader in alternative energy, offering grid interconnection solutions as well as licensed wind energy designs and electrical systems. As the world's principal supplier of HTS wire, the company is enabling a new generation of compact, high-power electrical products, including power cables, grid-level surge protectors, Secure Super Grids™ technology, motors, generators, and advanced transportation and defense systems. AMSC also provides utility and industrial customers worldwide with voltage regulation systems that dramatically enhance power grid capacity, reliability and security, as well as industrial productivity. The company's technologies are protected by a broad and deep intellectual property portfolio consisting of hundreds of patents and licenses worldwide. More information is available at www.amsc.com.
American Superconductor and design, Revolutionizing the Way the World Uses Electricity, AMSC, Powered by AMSC, D-VAR, PQ-IVR, PowerModule, Secure Super Grids, Windtec and SuperGEAR are trademarks or registered trademarks of American Superconductor Corporation or its subsidiaries.
Any statements in this release about future expectations, plans and prospects for the company, including our expectations regarding the future financial performance of the company and other statements containing the words "believes," "anticipates," "plans," "expects," "will" and similar expressions, constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. There are a number of important factors that could cause actual results to differ materially from those indicated by such forward-looking statements. Such factors include: uncertainties regarding the company's ability to obtain anticipated funding from corporate and government contracts, to successfully develop, manufacture and market commercial products, and to secure anticipated orders; the risk that a robust market may not develop for the company's products; the risk that strategic alliances and other contracts may be terminated; the risk that certain technologies utilized by the company will infringe intellectual property rights of others; and the competition encountered by the company. Reference is made to these and other factors discussed in the "Risk Factors" section of the company's most recent quarterly or annual report filed with the Securities and Exchange Commission. In addition, the forward-looking statements included in this press release represent the company's views as of the date of this release. While the company anticipates that subsequent events and developments may cause the company's views to change, the company specifically disclaims any obligation to update these forward-looking statements. These forward-looking statements should not be relied upon as representing the company's views as of any date subsequent to the date this press release is issued.
Jason Fredette, 978-842-3177
Director of Investor & Media Relations
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