Component supplier China Wind Systems (CWS) has agreed a provisional deal to supply shafts and gear wheels to Hangzhou Advance Gearbox Group, one of the top three gearbox manufacturers in China. The components will be used for Hangzhou's 1.5 MW gearboxes. Initially, CWS will produce two shafts and five gear-wheel prototypes to Hangzhou's specification. If these meet approval, the gearbox manufacturer will buy in bulk from next year. Price and order volumes will only be determined after the prototypes have been approved. Hangzhou's current manufacturing capacity is 500 gearboxes a year. "We are very pleased with our progress in transitioning to a wind-power components manufacturer, and hope to enter into more purchase agreements as we complete our trial production phase," says Jianhua Wu of CWS. Sales of forged products by CWS for use in the wind power industry are expected to reach $7 million in the fourth quarter of 2008, which will account for around 44% of its total revenues, says Jianhua. "In addition, we are also currently in talks with a number of potential customers and feel confident that we will secure more orders in the coming months," he says. "This could boost sales of our forged products for use in the wind power industry to $40 million in 2009, which will account for more than 50% of our total revenues."