China Wind Systems, Inc. Signs Letter of Intent to Supply Wind Power ...

Tag : gearbox
WUXI, China, Sept. 8 /Xinhua-PRNewswire-FirstCall/ -- China WindSystems, Inc. (OTC Bulletin Board: CWSI) ("China Wind Systems" orthe "Company"), which supplies forged rolled rings to the windpower and other industries and industrial equipment to the textileand energy industries in China, today announced that it has signeda letter of intent to supply shafts and gear rims for use in 1.5megawatt (MW) gearboxes to Hangzhou Advance Gearbox Group Co. Ltd(Hangzhou Advance Gearbox Group) -one of the top three gearboxmanufacturers in China.

Under the terms of the agreement, China Wind Systems will completetwo shafts and five gear-rim prototypes based on Hangzhou AdvanceGearbox Group's technical specifications. Upon successfully passingthe inspection phase, Hangzhou Advance Gearbox Group is expected topurchase shafts and gear rims from China Wind Systems in 2009 foruse in its 1.5 MW gearboxes. Hangzhou Advance Gearbox Group'scurrent manufacturing capability is 500 gearboxes per year, andtotal tonnage of shafts and gear rims in a gearbox is approximately30-35 tons. The current average selling price per ton of forgedproducts in a gearbox is RMB 15,000 (approximately $2,195). Ordersunder the LOI are contingent on successful delivery of theprototypes and subject to negotiation as to pricing, quantities andterms of delivery.

"We look forward to fulfilling Hangzhou Advance Gearbox Group'sneed for precision wind components by supplying the company withhigh-quality shafts and gear rims. We are very pleased with ourprogress in transitioning to a wind-power components manufacturer,and hope to enter into more purchase agreements as we complete ourtrial production phase," said Mr. Jianhua Wu, chairman and CEO ofChina Wind Systems. "Forged products sales are expected to reach$9.0 million, which is approximately 55% of projected totalrevenues in the fourth quarter of 2008. Sales of our forgedproducts for use in the wind power industry are expected to reach$7.0 million in the fourth quarter of 2008, which will account forapproximately 44% of our total revenues. In addition, we are alsocurrently in talks with a number of potential customers and feelconfident that we will secure more orders in the coming months.This could boost sales of our forged products for use in the windpower industry to $40 million in 2009, which will account for morethan 50% of our total revenues," Mr. Wu said.

About China Wind Systems, Inc.

China Wind Systems supplies forged rolled rings to the wind powerand other industries and industrial equipment to the textile andenergy industries in China. With its newly finishedstate-of-the-art production facility, the Company is expected soonto significantly increase its shipment of high- precision rolledrings and other essential components primarily to the wind powerand other industries. For more information on the Company, visithttp://www.chinawindsystems.com . Information on the Company's Website or any other Web site does not constitute a portion of thisrelease.

Safe Harbor Statement

This release contains certain "forward-looking statements" relatingto the business of the Company and its subsidiary companies. Theseforward-looking statements are often identified by the use offorward-looking terminology such as "believes, expects" or similarexpressions. Such forward looking statements involve known andunknown risks and uncertainties that may cause actual results to bematerially different from those described herein as anticipated,believed, estimated or expected. Investors should not place unduereliance on these forward-looking statements, which speak only asof the date of this press release. The Company's actual resultscould differ materially from those anticipated in theseforward-looking statements as a result of a variety of factors,including those discussed in the Company's periodic reports thatare filed with the Securities and Exchange Commission and availableon its website ( http://www.sec.gov ). All forward-lookingstatements attributable to the Company or to persons acting on itsbehalf are expressly qualified in their entirety by these factorsother than as required under the securities laws. The Company doesnot assume a duty to update these forward-looking statements.

For more information, please contact: Company Contact: Mr. Leo WangVice President, Finance China Wind Systems, Inc. Tel:+1-917-455-7735 E-mail: leo.wang@chinawindsystems.com Web site:http://www.chinawindsystems.com Investor Relations Contact: Mr.Crocker Coulson President, CCG Investor Relations Tel:+1-646-213-1915 (NY Office) E-mail: crocker.coulson@ccgir.com Website: http://www.ccgir.com SOURCE China Wind Systems, Inc.




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