AMSC in row with Sinovel over refused shipment

UNITED STATES: American Superconductor Corporation (AMSC) has said it will make a loss in the fourth quarter as a result of a dispute with Sinovel and a slowdown in the Chinese market.

by James Quilter 6 April 2011

The components in question were to be used for Sinovel turbines, including its 3MW product

AMSC shares have almost halved after it revealed Sinovel had refused to accept and pay for contracted shipments of wind turbine components.

AMSC said the components were for Sinovel’s 1.5MW and 3MW turbines. It believes Sinovel wants to reduce its inventory before accepting further shipments.

According to AMSC, Sinovel’s refusal to accept and pay for the products in 2010 is the principle reason behind the company’s for performance.

When contacted by “uåX˜äŠÊ˜·³Ç, Sinovel said it was unable to comment.

Analysts were expecting AMSC to announce a profit, as it has on the previous eight quarters.

In a statement, AMSC said: "AMSC continues to have active discussions with Sinovel to determine when Sinovel will accept further shipments and when it will pay for past shipments.

"In the meantime, AMSC has taken certain actions to reduce expenses, and the company is in the process of implementing plans to better align spending with near-term revenues while continuing to maintain a high level of service and support for its global Wind and Grid customers."