Wuxi, China, October 19, 2010 — China Wind Systems, was awarded a new contract to supply high-speed shafts to Nanjing Chang Feng New Energy Holdings, an electric generator manufacturer.
As per the sales contract, China Wind Systems will deliver a total of 1,500 units of high-speed shafts at a pre-determined price of $1,973 per unit, amounting to total revenue of about $3 million.
The company will deliver the first 500 units by the end of fiscal year 2010 and the remaining 1,000 units in the first half of fiscal year 2011. The high-speed shaft is used to transmit energy from the gearbox to the generator to produce electricity from wind turbines.
“Our cooperation with Nanjing Chang Feng further demonstrates our growing reputation as a high-quality product manufacturer and preferred wind component supplier in China,” said Jianhua Wu, Chairman and CEO of China Wind Systems. “We have increasingly observed downstream wind power players expand their production capacity to meet the growing market demand for wind power fuelled by China‘s aggressive renewable energy policy. In light of our recent sales contract wins and our attractive market position as a leading wind component supplier, we reaffirm our 2010 financial guidance of revenue to be in the range of $76.5 million to $85.0 million and net income to be between $15.5 million and $16.3 million. We are also confident that our wind industry segment will exhibit a 75 percent year-over-year growth to reach $35 million in fiscal year 2010.”
Nanjing Chang Feng New Energy Holdings is a subsidiary of Nanjing Turbine and Electric Machinery Group that was founded in 1956 and is engaged in manufacturing electric generators for various industries. Nanjing Chang Feng was formed as a subsidiary to focus on production of electric generators for the wind power industry.
China Wind Systems supplies forged rolled rings to the wind power and other industries and industrial equipment to the textile industry in China. With its new production facility, the company has increased its production and shipment of high-precision rolled rings and other essential components primarily to the wind power and other industries.