AMSC (NASDAQ: AMSC), a global energy solutions provider serving
wind and power grid industry leaders, today announced it has
received a $9 million order for its 5.5 megawatt (MW) wind turbine
electrical control systems (ECS) from Doosan Heavy Industries &
Construction Co., Ltd. (Doosan), South Korea’s premium wind turbine
manufacturer.
AMSC signed an agreement with Doosan in calendar year 2017 for
the rights to design and exclusively supply ECS units to Doosan’s
5.5-megawatt offshore wind turbine. The initial 5.5 MW systems were
ordered in January 2018, and AMSC expects to complete shipments
under this follow-on order by no later than fiscal year 2020.
“We believe that this order represents the beginning of Doosan’s
transition into volume production with one of the world’s largest
offshore wind turbines,” said Daniel P. McGahn, Chairman, President
and CEO, AMSC. “As the South Korean wind market grows and Doosan
positions itself for export, we stand ready to support its
anticipated production ramp with our 5.5 MW electrical control
system.”
According to GlobalData, the South Korean offshore wind market
capacity is forecasted to grow to approximately 6 GW by 2030 while
the global offshore wind power market capacity is forecasted to
grow to approximately 100 GW by
2030.
The 5.5 MW full conversion wind turbine design and prototype is
the product of a joint development between South Korea-based
Hyundai and AMSC, which Doosan acquired in 2017. AMSC's wind
turbine ECS include the company's
proprietary PowerModule™ power converters, pitch and yaw
converters, SCADA systems and other power electronics. They are
designed to enable reliable, high-performance wind turbine
operation by controlling power flows, regulating voltage,
monitoring system performance and controlling the pitch of wind
turbine blades to maximize efficiency.
About Doosan Heavy Industries & Construction Co.,
Ltd. Established in 1962 as Korea's leading power plant
specialist, first domestic power plant builder, Doosan Heavy
Industries & Construction has been contributing leading the
advancement of Korea's plant technology, fully equipped with an
integrated production and supply system, from basic materials to
finished products. Doosan has so far built over 300 nuclear,
thermal, combined cycle and hydro power plants, and is currently
building more than 60 power plants globally. Doosan is a major
engineering, procurement, and construction (EPC) contractor in the
world plant market, providing services that include engineering
design, basic material fabrication, equipment installation,
commissioning, and facility construction. Over the past 50 years,
Doosan has supplied specialized products and services to power
generation plants and desalination plants in more than 40 countries
around the world. Doosan has completed substantial power plant
projects across the world including the Middle East, India, and
Southeast Asia.
About AMSC (NASDAQ:AMSC) AMSC
generates the ideas, technologies and solutions that meet the
world's demand for smarter, cleaner … better energy™. Through its
Windtec™ Solutions, AMSC provides wind turbine electronic controls
and systems, designs and engineering services that reduce the cost
of wind energy. Through its Gridtec™ Solutions, AMSC provides the
engineering planning services and advanced grid systems that
optimize network reliability, efficiency, and performance. AMSC's
solutions are now powering gigawatts of renewable energy globally
and are enhancing the performance and reliability of power networks
in more than a dozen countries. Founded in 1987, AMSC is
headquartered near Boston, Massachusetts with operations in Asia,
Australia, Europe, and North America. For more information, please
visit www.amsc.com.
AMSC, Windtec, Gridtec, PowerModule, and Smarter, Cleaner …
Better Energy are trademarks or registered trademarks of American
Superconductor Corporation. All other brand names, product names,
trademarks, or service marks belong to their respective
holders.
Forward-Looking StatementsThis press release contains
“forward-looking statements” within the meaning of Section 21E of
the Securities Exchange Act of 1934, as amended (the “Exchange
Act”). Such statements include, but are not limited to, our
expectation that we will complete shipments under this follow-on
order by no later than fiscal year 2020; our belief that this order
represents the beginning of Doosan’s transition into volume
production with one of the world’s largest offshore wind turbines;
South Korean and global offshore wind market capacity; Doosan’s
strategy and anticipated production ramp; functionality,
performance and capabilities of our ECS; and other statements
containing the words “believes,” “anticipates,” “plans,” “expects,”
“will” and similar expressions. Such forward-looking statements
represent management’s current expectations and are inherently
uncertain. There are a number of important factors that could
materially impact the value of our common stock or cause actual
results to differ materially from those indicated by such
forward-looking statements. These important factors include, but
are not limited to: A significant portion of our revenues are
derived from a single customer, Inox, and we cannot predict if and
how successful Inox will be in executing on Solar Energy
Corporation of India orders under the new central and state auction
regime, and any related failure by Inox to succeed under this
regime, or any delay in Inox’s ability to deliver its wind
turbines, could result in fewer ECS shipments to Inox; We have a
history of operating losses and negative operating cash flows,
which may continue in the future and require us to secure
additional financing in the future; Our operating results may
fluctuate significantly from quarter to quarter and may fall below
expectations in any particular fiscal quarter; Our financial
condition may have an adverse effect on our customer and supplier
relationships; Lower prices for other fuel sources may reduce the
demand for wind energy development, which could have a material
adverse effect on our ability to grow our Wind business. Our
success in addressing the wind energy market is dependent on the
manufacturers that license our designs; Our success is dependent
upon attracting and retaining qualified personnel and our inability
to do so could significantly damage our business and prospects; We
rely upon third-party suppliers for the components and
sub-assemblies of many of our Wind and Grid products, making us
vulnerable to supply shortages and price fluctuations, which could
harm our business; We may not realize all of the sales expected
from our backlog of orders and contracts; Growth of the wind energy
market depends largely on the availability and size of government
subsidies, economic incentives and legislative programs designed to
support the growth of wind energy; We have operations in, and
depend on sales in, emerging markets, including India, and global
conditions could negatively affect our operating results or limit
our ability to expand our operations outside of these markets; We
face risks related to our intellectual property; We face risks
related to our technologies; We face risks related to our legal
proceedings; We face risks related to our common stock; and the
important factors discussed under the caption "Risk Factors" in
Part 1. Item 1A of our Form 10-K for the fiscal year ended March
31, 2019, and our other reports filed with the SEC. These important
factors, among others, could cause actual results to differ
materially from those indicated by forward-looking statements made
herein and presented elsewhere by management from time to time. Any
such forward-looking statements represent management's estimates as
of the date of this press release. While we may elect to update
such forward-looking statements at some point in the future, we
disclaim any obligation to do so, even if subsequent events cause
our views to change. These forward-looking statements should not be
relied upon as representing our views as of any date subsequent to
the date of this press release.
Investor Relations Contact:LHA Investor RelationsSanjay M. Hurry
(212) 838-3777amscIR@lhai.com
Public Relations Contact:RooneyPartners LLC Bob
Cavosi646-638-9891rcavosi@rooneyco.com
AMSC Communications Manager:Nicol GolezPhone: 978-399-8344Email:
Nicol.Golez@amsc.com
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