Chairman Wang Yuan quit for personal reasons, the company said in a filing to the Shanghai Stock Exchange dated July 7. Wang will step down from his positions at all Sinovel units and will remain a board member, according to the statement. The departure is the second in less than two years after Han Junliang, Wang’s predecessor, resigned in March last year.
Once China’s largest turbine manufacturer, Sinovel has faced lower orders from project developers and been hurt by customer lawsuits, according to Bloomberg New Energy Finance head of wind analysis Amy Grace.
“It’s not just that they’ve lost the ability to export because of the lawsuit, something else is happening,” Grace said today in an interview. “All their demand comes from China. My guess is that they fell out of favor with a lot of people out there.”
Sinovel is embroiled in a legal dispute with Devins, Massachusetts-based American Superconductor Corp., which sought more than $1.2 billion in damages in Chinese courts from its former largest customer. AMSC accused Sinovel of stealing its technology and violating sales contracts.
The company fell to 13th worldwide and to seventh in China in installations, behind China’s leading installer Xinjiang Goldwind Science & Technology Co., which ranks second in the world after Vestas Wind Systems A/S, according to Bloomberg New Energy Finance.
Sinovel reported a 2013 net loss of 3.45 billion yuan ($556 million), widening from 582.7 million yuan in 2012. It said in January the exchange may put the stock on a watchlist for possible delisting after the loss. The company’s 2.8 billion yuan of bonds were suspended from trading April 30.
The company’s stock has slumped 28 percent this year after the manufacturer said in January that the China Securities Regulatory Commission was investigating the company for a suspected violation of securities laws and regulations.
Sinovel said it will select a new chairman as soon as possible, according to yesterday’s statement, which didn’t provide further details.
To contact the editors responsible for this story: Pratish Narayanan at firstname.lastname@example.org Robin Saponar, Jim Efstathiou Jr.