More losses and final rescue

Google Translate

At an extraordinary general meeting last month, NEG Micon's financial rescue was completed with a substantial purchase of new shares by existing shareholders. The company reported that its loss for 1999 will be DKK 630 million, a larger sum than the DKK 550-600 million previously estimated. The extra loss is attributed to sales contracts completed with American customers.

Shareholders also heard more about the company's gear box retrofit program. NEG Micon has agreed to buy 2000 gear boxes over the next five years from its gearbox supplier, Flender of Germany. Part of the payment for this order will be deposited in a retrofit account which will be used to finance the program. Currently three retrofitted gear boxes are being tested on a test bed while a fourth has been installed on an NEG Micon 600 kW turbine in Denmark.

A call from four shareholders for NEG Micon to sell its five loss making subsidiaries (Windpower Monthly, December 1999), bought up over the past year or so, was dropped. On the contrary, one of the companies, British Aerolam, is expected to increase NEG Micon's in-house production of blades from 12% to 30%. NEG Micon also reported that it has orders for DKK 2.8 billion and that turnover for 1999 is expected to be DKK 4.7 billion, compared with DKK 3 billion in 1998.

On the good news front, the company said it had won a EUR 1.5 million EU grant for development over three years of a 2.5 MW turbine with a rotor diameter of at least 78 metres for use offshore. And a shareholder dropped its threat to sue NEG Micon for misinformation to the stock exchange just weeks before the announcement of massive losses in late September.

Have you registered with us yet?

Register now to enjoy more articles
and free email bulletins.

Sign up now
Already registered?
Sign in

Latest news

Partner content