CHINA SCANDAL SQUELCHES US-FINNISH WIND DEAL

AMSC pulls out of The Switch deal
James Quilter, 31 October 2011 (Windpower Monthly)

"AMSC has announced the termination of its $265 million deal to acquire Finnish direct drive specialist The Switch…AMSC announced the deal in March. However, a month later AMSC announced its largest customer Sinovel had refused a shipment of turbine components…[forcing AMSC] to restate its revenue for the first and second quarters.

"…AMSC blamed…adverse market conditions for financing [for the cancellation of the Switch deal]…The Switch shareholders will retain the €14.2 million advance payment made by AMSC in July."

AMSC is active in an array of areas (click to enlarge

"…AMSC [said] strong synergies [remain] between [the] two companies and [they] expect to continue to work collaboratively on drivetrain solutions that increase wind turbine reliability and lower the cost of energy…

"…Complicating the picture is that The Switch's major customers include Sinovel's main Chinese rivals, Goldwind and Dongfang."