Wind power major Suzlon Energy Ltd has refuted media reports of supplying faulty blades for an REPower project in China's Shandong province.
Suzlon, in fact, denied that it had supplied any blades to REpower, saying it had yet to commence commercial production of those particular blades.
The Wall Street Journal had reported, citing sources ''Suzlon Energy Ltd of India, one of the world's biggest makers of wind turbines, is facing new problems over faulty blades for a project in China's Shandong province.
Suzlon responded to the report saying. ''Those blades are still in the prototype phase of the manufacturing process, which includes rigorous testing of the blades' ability to perform reliably and safely. Suzlon will only commence serial manufacturing and delivery of blades after it completes this prototype phase and can guarantee the quality of the product.,'' it said, adding, ''The company is working vigorously to complete this process and commence full-scale production.''
Suzlon has contracted to supply blades for 75 turbines in a project being managed by Germany's REPower Systems AG, with an option for 75 more; REPower rejected the prototype and ordered the equipment from elsewhere, The Wall Street Journal said.
''Suzlon owns 74 per cent of REPower although it has to manage it at arm's length because of German laws protecting minority investors; REPower lost 6 million euros ($7.9 million) because of the problems with the first batch and Suzlon said it was "working vigorously" on testing the latest blades,'' the WSJ reported.
Rejecting the allegations, Suzlon said, ''The blade design was REpower's, and the manufacturing process required Suzlon to adjust the specifications and processes of existing manufacturing facility in Tianjin, China, to meet the REpower design specifications. The new process also involved training of the existing workers.''
''Suzlon is focused only on completing the project while ensuring adherence to high quality standards, which is delaying the delivery. If financial liabilities exist related to the delivery issues that REpower may intend to seek Suzlon's assistance with, that matter will be a subject for discussion between both parties. However, any such liabilities if they occur would be non-material and insignificant. Additionally, it should be noted that Suzlon owns 74 per cent of REpower and this is a transaction between related parties,'' it noted.
Suzlon, ranked as the world's fifth leading wind turbine manufacturer in 2008, has a 50 per cent market share in India. Suzlon, with its corporate office in Pune, extends business across Asia, Australia, Europe and North and South America.
The company currently has a combined manufacturing base of 4,200 MW of annual capacity.