Sinovel files $12 million counter claim against AMSC

CHINA: Sinovel has filed a counterclaim to Beijing Arbitration Commission requesting the arbitration tribunal to reject all the arbitration claims made by American Superconductor (AMSC) and rule AMSC to compensate Sinovel CNY 79.9 million ($12 million) for economic losses from breach of contracts.

The move follows AMSC's announcement on 15 September that it had filed an arbitration claim with the Beijing Arbitration Commission.

AMSC said in April this year that Sinovel refused to pay for certain shipments and failed to continue to fulfil the contract between them. AMSC wants Sinovel to pay nearly CNY 500 million in compensation. 

From May 2008 to January 2011, AMSC and Sinovel signed eight purchasing contracts, under which AMSC would supply Sinovel with electronic control components for Sinovel to produce SL1500 and SL3000 wind turbines.

Sinovel said it rejected AMSC contract goods, because they fail to meet contract requirements in technologies and quality.

The company said the arbitral tribunal has officially accepted the counterclaim and will try the case along with the AMSC arbitration application.