AMSC Licenses Wind Turbine Technology to TECO Electric & Machinery Co., LTD
- TECO to Initiate Production of Proprietary AMSC Windtec 2 MW Wind Turbines in Taiwan in 2009
- Licensed Territory Includes Taiwan and Mainland China
- TECO to Utilize AMSC's Proprietary Core Electrical Components in Each Turbine
DEVENS, Mass.--(BUSINESS WIRE)--June 6, 2008--American
Superconductor Corporation (NASDAQ: AMSC), a leading energy
technologies company, announced today that it has licensed one of its
proprietary wind turbine designs to Taiwan-based TECO Electric &
Machinery Co., Ltd. (TECO), the world's third largest motor
manufacturer. Under the terms of the contract, AMSC's wholly owned
AMSC Windtec subsidiary will license to TECO the design for its
FC-2000, a proprietary 2 megawatt (MW) IEC Class I (high wind speed)
wind turbine. Founded in 1956, TECO is one of Taiwan's largest
conglomerates and one of Asia's leading manufacturers of heavy
machinery.
TECO today operates approximately 30 diversified subsidiaries and affiliations across Asia, Europe and the United States. TECO is the parent company of Round Rock, TX-based TECO-Westinghouse Motor Company. In late 2007, AMSC and TECO-Westinghouse formed a research joint venture to develop high temperature superconductor (HTS) and related technologies for 10 MW, direct drive wind generators for offshore wind farms. The license announced today applies to a wind turbine design that utilizes a conventional generator.
"Wind power is one of the fastest growing and most lucrative business opportunities today in Taiwan," said Zhaokai Liu, President of TECO. "With decades of manufacturing experience, including the production of wind turbines, TECO aims to become Taiwan's leading wind turbine manufacturer and a major supplier for China. We chose AMSC Windtec because of the proven nature of their turbine designs and their unique ability to help customers rapidly scale production."
In addition to a multi-million-dollar upfront license fee, AMSC will receive royalty payments for wind turbines produced by TECO. AMSC also has a right of first refusal to provide the full electrical systems and core electrical components for all of the wind turbines manufactured by TECO.
TECO has purchased the right to manufacture and sell the FC-2000 wind turbine in Taiwan and to also sell this product to wind farm developers in mainland China. AMSC Windtec will provide training for TECO's staff and project management services for the company's first prototype units. TECO plans to begin manufacturing the 2 MW wind turbines in 2009.
"Because of TECO's strong reputation and established manufacturing base, they are an ideal partner for AMSC to enter the wind market in Taiwan," said AMSC founder and chief executive officer, Greg Yurek. "We have also licensed TECO the right to sell the FC-2000 wind turbines in China, which continues to be the world's fastest growing market for wind power. We look forward to addressing these growth opportunities together and to expanding our existing business relationship, which is based on the development of superconductor wind generators."
Recent reports have indicated that China may increase its wind power capacity from 6 gigawatts at the end of 2007 to 100 gigawatts by 2020. This type of expansion would require approximately 47,000 2 MW wind turbines over a 13-year timeframe.
To learn more about AMSC's product offerings for the wind industry, please visit http://www.amsc.com/products/applications/windEnergy/index.html.
About TECO Electric & Machinery Co., Ltd.
TECO Electric & Machinery Co., Ltd. (TSE 1504) was founded in 1956 and has emerged as one of world's leading motor-manufacturers. Spanning the past 50 years, TECO is now engaged in various business sectors ranging from Industrial Products, Home Appliances, Mechanical and Electrical Construction, Key Components Manufacturing and Information Technology. TECO's consolidated revenue exceeded $1 billion (US) for the 2007 fiscal year. More information is available at http://www.teco.com.tw.
About American Superconductor (NASDAQ: AMSC)
AMSC is a leading energy technologies company offering an array of solutions based on two proprietary technologies: programmable power electronic converters and high temperature superconductor (HTS) wires. The company's products, services and system-level solutions enable cleaner, more efficient and more reliable generation, delivery and use of electric power. AMSC is a leader in alternative energy, offering grid interconnection solutions as well as licensed wind energy designs and electrical systems. As the world's principal supplier of HTS wire, the company is enabling a new generation of compact, high-power electrical products, including power cables, grid-level surge protectors, Secure Super Grids technology, motors, generators, and advanced transportation and defense systems. AMSC also provides utility and industrial customers worldwide with voltage regulation systems that dramatically enhance power grid capacity, reliability and security, as well as industrial productivity. The company's technologies are protected by a broad and deep intellectual property portfolio consisting of hundreds of patents and licenses worldwide. More information is available at www.amsc.com.
American Superconductor and design, Revolutionizing the Way the World Uses Electricity, AMSC, Powered by AMSC, SuperVAR, D-VAR, DVC, PQ-IVR, PowerModule, PQ-SVC, Secure Super Grids, Windtec and SuperGEAR are trademarks or registered trademarks of American Superconductor Corporation or its subsidiaries.
Any statements in this release about future expectations, plans and prospects for the company, including our expectations regarding the future financial performance of the company and other statements containing the words "believes," "anticipates," "plans," "expects," "will" and similar expressions, constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. There are a number of important factors that could cause actual results to differ materially from those indicated by such forward-looking statements. Such factors include: uncertainties regarding the company's ability to obtain anticipated funding from corporate and government contracts, to successfully develop, manufacture and market commercial products, and to secure anticipated orders; the risk that a robust market may not develop for the company's products; the risk that strategic alliances and other contracts may be terminated; the risk that certain technologies utilized by the company will infringe intellectual property rights of others; and the competition encountered by the company. Reference is made to these and other factors discussed in the "Risk Factors" section of the company's most recent quarterly or annual report filed with the Securities and Exchange Commission. In addition, the forward-looking statements included in this press release represent the company's views as of the date of this release. While the company anticipates that subsequent events and developments may cause the company's views to change, the company specifically disclaims any obligation to update these forward-looking statements. These forward-looking statements should not be relied upon as representing the company's views as of any date subsequent to the date this press release is issued.
CONTACT:
American Superconductor Corporation (NASDAQ: AMSC)
Jason Fredette, 978-842-3177
Director of Investor & Media Relations
jfredette@amsc.com
SOURCE: American Superconductor Corporation
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