Sany to sue US government after Obama rejection

UNITED STATES: Sany-owned Ralls Corp has announced plans to sue the US government after President Obama blocked the company from owning four 10MW wind projects in Oregon on grounds of national security.

The projects would have used Sany's 2MW turbine

See 2 October update below

Obama on Friday prevented Ralls from owning four wind farms in Boardman, Oregon, citing their locations as too near the Naval Weapons Systems Training Facility. It is the first time in 22 years that a US president has blocked a foreign business deal.

In response, Sany has accused the US president of electioneering. It also said foreign ownership of the projects had not been a problem when Greek developer Terna had owned them prior to Sany's acquisition in March. 

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

In July, projects were cancelled by a Committee on Foreign Investment in the United States 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.

"The decisions of the CFIUS were arbitrary and went against the Administrative Procedure Act. They were all about Ralls' threat to US national security, but without a single piece of factual support."

"Even the US government hadn't done any on-the-spot investigations," Zhou continued, adding that all the construction was done by US companies.

Update 2 October

Sany owned Ralls has now updated its earlier legal challenge last month over the CFIUS's decision to halt the development of the site. The complaint has been amended to include President Barack Obama.