China Wind Systems, Inc., a growing clean-power equipment and components company in China, with offices in New York, announced today that it has signed a preliminary agreement with Shanghai Jing An Metal Materials Ltd. to supply 12,000 tons of electro-slag remelted products (ESR). The agreement calls for China Wind to deliver the product over a two-and-a-half year period, commencing in March 2010 after completion of the company’s ESR production line.
The current selling price per ton of the contract’s ESR product is about RMB 20,000 to RMB 28,000 However, the final price is subject to prevailing market rates. The company expects the first deliveries to be in 2010. Given the size of the order, China Wind Systems anticipates that the contract will utilize almost all of its ESR production capacity during the 2½ year period required.
China Wind chairman and CEO, Mr. Jianhua Wu, commented on the significance of the order. “This contract, representing our first order for our new ESR production line, validates our strategic decision to enter into this product segment. We are committed to supplying high quality ESR products and anticipate growing this business over time.”
China Wind Systems supplies forged rolled rings to the wind power and other industries, as well as industrial equipment to the textile and energy industries in China. The company is expected to significantly increase its output of high-precision rolled rings and other essential components, due to a newly completed state-of-the-art production facility.
The wind power industry has been growing rapidly as new technologies have greatly reduced the cost of its energy generation, but it now faces a serious shortage of associated components, such as high quality bearings and gearboxes. China Wind Systems is focused on supplying these critical components and expects major growth as it continues to solidify its reputation in the industry.