Canada - Hanwei commences production of windpower blades

RMB 1.7 billion ($232 million) of wind power equipment to be provided over three years

Hanwei Energy Services Corp. ("Hanwei") is pleased to announce that has commenced commercial production of FRP (fibreglass reinforced plastic) wind power blades pursuant to its agreement with Daqing Deta Electric Co. Ltd. ("Deta") to provide RMB 1.7 billion ($232 million) of wind power equipment over three years.

Hanwei announced on June 1, 2007, that it had signed an agreement with Deta that includes an initial order to supply approximately RMB 200 million ($27.2 million) worth of wind power products and an expression of intent to place additional orders with Hanwei for wind power products in the amount of RMB 600 million ($81.7 million) in 2008 and RMB 900 million ($122.6 million) in 2009, subject to satisfactory completion by Hanwei of the 2007 order. The initial order is for Hanwei to manufacture and deliver to Deta various wind power products, including 20 turbines, 20 blade sets and 30 towers. Under an amended delivery schedule, Hanwei has agreed to deliver 4 turbines and 10 blade sets and all 30 of the towers by December 31, 2007, with the balance of the initial order due by March 31, 2007. Hanwei will provide an update on actual deliveries in January 2007.

The 37.5-meter pitch rotor blades have a 1.5 megawatt capacity and leverage Hanwei's core expertise in FRP manufacturing. Hanwei has completed tests on the blades under international standards, including tests for strength and hardness, blade surface quality control, quality distribution, natural frequency and damping.

"With the commencement of commercial production of FRP wind blades, we now provide products for the oil, clean coal and wind power sectors. These sectors have tremendous growth opportunities driven by China's growing demand for energy and government policies mandating and supporting the implementation of more efficient and environmentally friendly technologies," said Fulai Lang, president and CEO of Hanwei, "The China market for wind power equipment is estimated at over C$30 billion to meet China's target of 30,000 megawatts by 2020. Our success to date in the wind power sector puts Hanwei in position to leverage our existing relationships to win additional contracts in this rapidly growing sector. To further enhance our wind power capabilities, we intend to capitalize on our partnership with Deta, as well acquire and license additional wind power technology and expertise, with the goal of adding at least one major customer in 2008,"

About Hanwei Energy Services Corp.
Hanwei Energy Services Corp. provides high value products and services for the energy sector in China and the Asia region. Hanwei serves its major energy customers through manufacturing facilities in China, producing products for the oil, coal power and wind power industries. Hanwei is focusing on providing products and services that address the growing need for improved energy efficiency and environmental protection in China and the Asia region.

Edited by Trevor Sievert, Online Editorial Journalist
wind energy, wind farm, renewable energy, wind power, wind turbine, rotorblade, offshore, onshore

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