ABOUT SUZLON ENERGY• The Suzlon Group was ranked as the world’s fifth largest wind turbine supplier, in 2010.• Headquarters in Pune• Its global spread extends across various countries over 18,000 MW of wind energy capacity installed in 28 countries, operations in 32 countries, a workforce 13,000 employees.
PRODUCT PORTFOLIOS• Sub-megawatt on-shore turbines at 600 Kilowatts (KW).• 6.15 MW offshore turbine – built on a vertically integrated, low-cost, manufacturing base.• REpower Systems SE, a leader in offshore wind technology.
Texas based Trinity Files Litigation AgainstSuzlon Wind Energy Corporation Over$500mn Contract
ABOUT TRINITY STRUCTURAL TOWERS• It is a wholly-owned subsidiary of Trinity Industries, Inc., and a leading manufacturer of structural wind towers in North America.• Trinity Industries, Inc is headquartered in Dallas, Texas.• It is a multi-industry company that owns a variety of market- leading businesses which provide products and services to the industrial, energy, transportation, and construction sectors.• It reports its financial results in five principal business segments
AGREEMENT BETWEEN SUZLON AND TRINITYSTRUCTURAL TOWERS • Suzlon entered into an agreement in 2008 to purchase approximately $377.3 million worth of TSTI- manufactured 80-meter wind towers on a scheduled basis through 2011. • TSTI and Suzlon mutually agreed for an additional $123.8 million worth of wind towers to be purchased and extending the delivery timeframe through 2013.
BREACH OF CONTRACT• TSTI has produced and delivered approximately $88.6 million worth of wind towers, excluding price adjustments applicable under the agreement.• After the previous delivery, it breached its contractual purchase obligations for 2010 and 2011.• Also Suzlon has not yet secured its 2012 and 2013 production space for its obligated purchase
FILING OF LITIGATION• TSTI had to incur damages as a result of Suzlons alleged breach of its purchase obligations.• Suzlons remaining purchase commitment under the Agreement, as amended, represents approximately $412 million (377+123-88).• The law suit was filed in the District Court of Dallas County due to an unethical practice by Suzlon.