GE behind China Wind’s newest $14M contract

Wuxi, China-based China Wind Systems (OTC:CWSI) said today is signed a $14 million contract to supply wind tower flanges to Chengxi Shipyard, with General Electric being the end beneficiary.

The news sent China Wind's stock up 14.17 percent, closing today at $1.45. The company has a $64.79 million market cap. 

China Wind supplies forged rolled rings, wind tower flanges and gear rims—all components of gearboxes—to wind power and other industries in China. China Wind said it is on a schedule to deliver 800 to 1,200 tons per month of wind tower flanges to Chengxi Shipyard, a ship repair and new building enterprise located in China’s Jiangsu City, between September 2009 and June 2010.

General Electric, one of Chengxi's largest wind customers and a world wind energy leader, is expected to be the end customer for these wind tower flanges. Some of Chengxi's other major wind customers include Vestas Wind Systems, Mitsubishi, and Mitsui. GE has already secured other agreements for wind system components to be produced in China (see Wind turbine blades to be made in China).

In June, China Wind received RMB 1 million ($146,000) in a grant from the Economic and Trade Bureau of Huishan District, Wuxi City. China Wind said it plans to use the money to increase production of forged products for the wind power and other industries in China (see Pound-for-pound, cleantech deals have a British twist).