Cogo Group Inc. serves as a gateway for global semiconductor companies to access the industrial and technology markets in China. The company today announced it was awarded a $1.5 million wind turbine contract since the acquisition of MDC Tech in late January. The contract was signed in February with key customer DongFang Turbine Co. Inc. Cogo said it expects shipments to commence and begin generating revenue in the third quarter of 2011.
Jeffrey Kang, CEO of Cogo, said the performance MDC Tech to-date boosts the company’s confidence that it will achieve significant revenue in the upcoming year.
“I am delighted that the acquisition of MDC Tech is already beginning to pay significant dividends and has put us in the ‘sweet spot’ of approximately $300 billion in Smart Grid spending in the next five years. This far reaching contract gives me increased confidence that we will reach the guidance for $15 million-$20 million in revenue in the first 12 months after the closing of the MDC acquisition on January 30, 2011,” Kang stated in the press release.
Per the agreement, Cogo will provide extensive design, logistical and engineering services and technical support and utilize key components and technology from a leading global European technology solution supplier for clean-tech technologies. Cogo anticipates additional wind turbine contracts in the future.
“This contract with DongFang Turbine Co. is moving Cogo upstream to encompass design, logistics and engineering services and the relatively large size of the contract will improve the visibility of our overall order book. We are confident that we will see many more contracts in the field of energy production and expect to quickly add new customers and new clean-tech energy businesses beyond wind very soon,” Kang stated.
The current contract, as well as with other wind turbine contracts signed by MDC with DongFang in the last 12 months, will be included in this year’s revenue.
“I believe that we will soon begin to see further benefits of MDC Tech as we leverage these new assets across our 1,600-strong customer base. I am very pleased with the overall order book for Cogo across all end markets thus far in 2011, with particular strength in our Industrials business. Consequently, I am confident about our visibility into delivering another year of high revenue growth,” Kang stated.
For more information visit www.cogo.com.cn