AMSC Receives $445M Order from Fast-Growing Chinese Wind Manufacturer

American Superconductor Corporation (NASDAQ: AMSC) announced a new multi-year order worth approximately US$445 million from Sinovel Wind Group Co., Ltd.

Under the terms of the agreement, AMSC will begin shipping core electrical components for Sinovel’s 1.5-megawatt (MW) wind turbines (branded the SL1500) in early 2011. Shipments under the new contract will span a period of 30 months. AMSC is currently shipping 1.5 MW core electrical components under a multi-year contract that extends through early 2011.

AMSC’s core electrical components include the company’s proprietary
PowerModule™ PM3000W power converter and enable wind turbine operation
by controlling power flows, regulating voltage, monitoring system
performance and controlling the pitch of wind turbine blades to maximize
efficiency.

Greg Yurek, founder and CEO of AMSC, said that Sinovel has grown faster than any wind turbine manufacturer in the world, since starting up production in 2006. He added that Sinovel plans to increase production of its 3 MW wind turbines, which are installed and operating in China’s first offshore wind farm; and the company expects to install its 5-MW prototype by the end of 2010.

Sinovel developed these higher power systems utilizing AMSC Windtec™ designs.

Industry research firms MAKE Consulting and BTM Consult recently issued reports ranking Sinovel as the world’s third largest wind turbine manufacturer based on its market share in 2009. The company increased its shipments from approximately 1,500 MW in 2008 to approximately 3,900 MW in 2009. Sinovel has publicly stated its intention to become the world’s largest wind turbine manufacturer within five years.

MAKE expects that China will increase its total amount of grid-connected wind power from approximately 19,000 MW at the end of 2009 to approximately 130,000 MW by the end of 2015.

In January, AMSC signed a contract with China’s Dongfang Turbine Co. Ltd. to design and jointly develop 5 megawatt (MW) full conversion wind turbines for the offshore wind power market.

AMSC also supplies wind turbine electrical control systems to China’s Shenyang Blower Works (Group) Co., Ltd. (SBW).