Repower wins court ruling against Indian licensee

INDIA: An Indian court has backed up Repower’s termination of its manufacturing agreement with its Indian licensee the Essar Group, according to reports.

Repower's deal with Essar covered the MM92 2MW turbine
Repower's deal with Essar covered the MM92 2MW turbine

In 2006, Repower signed a deal with steel manufacturer and wind developer Essar to create Essar Repower. The court's ruling will allow Repower to seek out a new manufacturing partner.

The venture, which was launched a year before Repower’s acquisition by Suzlon, was to produce the German manufacturer’s 1.5MW and 2MW turbines.

The deal was set to run until 2016 and would enable Repower to target markets in south-east Asia including, Thailand, Malaysia, India and Vietnam.

However, last year Repower terminated the agreement after citing that Essar had not built a factory as required. Essar subsequently took legal action to uphold the agreement.

The manufacturing plant was estimated to initially cost $11 million. It was believed to be lined up for a location in Gujarat, western India with production beginning in 2007.

When the deal was signed, Repower pointed out synergies with Essar’s background in steel. The towers were designed to use Essar’s steel plates grade, while the company was also set to manufacture turbine blades.

Speaking to Windpower Monthly last month, Repower CEO Andreas Nauen said the company was planning to announce a new wind turbine assembly facility in Asia this year.

The factory would serve the Australian, US and New Zealand markets. Production is likely to start with the MM92 2MW turbine.

Nauen said Repower is also looking to source more wind turbine components from China and India.

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