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China Wind Systems has completed its phase I expansion, which enables the Company to produce forged products to meet the growing demands of China¡¯s wind energy industry. In addition, as the trend in China's wind power industry shifts towards producing larger 5MW offshore and near-shore wind turbines, the Company expects that, given its strategic positioning as a large precision forged rolled rings provider, it will meet its 40,000-ton production capacity target and deliver 4,000 tons of ESR product in 2010. China Wind Systems is currently in discussion with a number of potential customers and is confident that it will secure more orders for its forged products in the coming months.
With the completion of the initial phase of expansion, the Company is capable of producing 40,000 tons of forged products. |
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Current Capacity |
Current Capacity |
Expansion Phase II |
Products |
Rolled rings up to 3 meters diameter |
Rolled rings up to 6.3 meters diameter rolled rings, flanges, shafts, and gear rims |
Electro-slag Re-melted forged products |
Equipment Installation |
None |
Jan 08 - Feb 09 |
Oct 2009- April 2010 |
Production Start |
April 2007 |
March 2009 |
July 2010 |
Design Capacity |
8,500 tons of rolled rings |
40,000 tons of rolled rings, flanges, shafts and gear rims |
6,000 tons of ESR product
200 Yaw Bearings |
Expected Gross Margins |
22% |
28%-30% |
35%-40% |
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CWS |
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Actual Capacity @ |
Design Capacity (Annual in tons) |
45,000 |
100% |
50% |
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ESR forged products 100% |
Total Tonnage Output |
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40,000 |
20,000 |
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6,000 |
Average Price/Tonnage (2008 RMB) |
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10,000 |
10,000 |
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30,000 |
Revenue (RMB) |
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400,000,000 |
200,000,000 |
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180,000,000 |
Exchange Rate |
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6.8 |
6.8 |
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6.8 |
Revenue (in USD) |
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58,823,529 |
29,411,765 |
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26,354,319 |
Average Gross Margin % |
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30% |
28% |
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37% |
Gross Profit £¨in USD) |
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17,647,058 |
8,235,294 |
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9,751,098 |
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