China Wind Systems inks ¥20M supply deal

Wuxi, China-based China Wind Systems said today it has signed a ¥20 million ($2.9 million) deal to supply wind-turbine components to a Chinese manufacturer.

The preliminary agreement with Wuxi Lida Gear Manufacturing calls for China Wind to produce 1,350 tons of forged rolled rings that each measure 3 to 4.5 meters starting in October.

Wuxi Lida uses the rolled rings to fabricate gear rims, which it then sells to companies in the wind industry. Wuxi Lida, also based in Wuxi, has a capacity of 5,000 units a year.

Earlier this month, China Wind Systems agreed to supply wind power components to Hangzhou Advanced Gearbox Group starting in 2009 (see China Wind Systems cuts deal with large wind supplier).

Jianhua Wu, chairman and CEO of China Wind, said in a release that the company expects to sign more contracts with wind-power equipment manufacturers as the company ramps production in October. Thanks to the new wind focus, the company expects to end 2008 with $45 million in revenues and $7 million in net income.

Also today, China Wind announced a supply deal for the heavy-machinery industry. China Wind plans to supply Wuye Heavy Industry Machinery with 1,300 to 1,650 tons of shafts and pedestals.

China Wind estimated that deal to be worth ¥20 million to ¥25 million from the fourth quarter of 2008 through the second quarter of 2009.

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