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United States

US government requests Sany case dismissal

UNITED STATES: The US government has asked a judge to dismiss Sany Electric's lawsuit against President Obama over the company's controversial Oregon wind project.

The projects were to use Sany's 2MW turbine
The projects were to use Sany's 2MW turbine

The request by the US Justice Department follows Sany's move to sue the government after Barack Obama decided to block Sany-subsidiary Ralls Co. from owning four 10MW wind projects in Oregon on grounds of national security.

The government is arguing that the Defense Production Act prohibits a review of presidential orders.

In the filing, a US government lawyer stated: "Neither the president’s findings nor his actions in the presidential order fall outside his extremely broad discretion, and Ralls’s constitutional claims are nothing more than disguised challenges to his exercise of that discretion."

The act, which came into force in 1950, is largely concerned with procurement and gives the president power to force private businesses to fulfil military orders.

Zhou Qing, legal affairs chief of Sany Group's international development planning department , said Sany would "exert all lawful efforts" to receive compensation.   

In July, projects were cancelled by the Committee on Foreign Investment in the United States (CFIUS) citing "national security risks" as the projects were near restricted airspace.

The panel also produced an amended order on 2 August prohibiting the sale of the projects, which are within five miles of restricted airspace. Additionally, the CFIUS said it only found out about a deal to sell the projects on via an article in Windpower Monthly.

However, the CFIUS failed to reach an agreement with Ralls on the decisions. The case was then transferred to the president, who has the final authority according to US procedures.

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