Suzlon clarifies that order pertains to REpower design, technology for blades installed

Suzlon clarifies that order pertains to REpower design, technology for blades installed; Suzlon was mere supplier; Reports suggest that REpower rejects Suzlon’s prototype for blades over quality standards

REpower rejects Suzlon’s prototype for blades over quality standards quoting WSJ. REpower blade prototype were for China’s Shandong order.

Suzlon says that REpower asked and contracted with Suzlon to have the company manufcature wind turbine blades for supllies to a project in China. The blade design was entirely REpower and the manufacturing process required Suzlon to adjust the specifications and processes of existing manufacturing facilities in Tianjin in China. The new process also involved training of workers. Suzlon has not delivered any blades to REpower.

The blades are currently in the protype phase and undergoing rigourous testing of their ability to perform reliably and safely. Serial manufcaturing and delivery of the blades will commence after the prototype phase and only after we can guarantee the quality of the product.

Suzlon is working rigoursly to complete this process and commence full scale production in consitence with its full quality standard and reality of manufacturing highly technocal blade components. If financial liabiity exists relating to the delivery issue that REpower may intend to seek Suzlon assitance with that matter will be subject for discussion between both parties. Any such liabilities if they occur would be non material and non insignificant. It should be noted that Sulzon owns 74% of REpower and this is a transaction between related parties.
Suzlon says that it is working closely with REpower to match their needs, &  the reports of blade quality issues incorrect. It is adjusting manufacturing capabilities & trying to understand REpower requirements at this point. The blades are still being tested & is not in the manufacturing phase.

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