Sinovel Seeks $66 Million From Longyuan for Contract PaymentsBloomberg News
Sinovel Wind Group Co., the Chinese turbine maker that has lost money for two consecutive years, is seeking 415 million yuan ($66 million) from units of China Longyuan Power Group for failure to make payments on contracts.
The cases involve the delivery of wind turbines signed from 2007 to 2009, according to a statement from Sinovel to the Shanghai Stock Exchange. The seven claims from Sinovel, filed with the China International Economic and Trade Arbitration Commission, apply to separate units at China Longyuan.
Beijing-based Sinovel Wind, which forecast last month that it probably returned to profit in 2014, said the contract dispute’s impact on earnings is unknown because arbitration is underway. Lan Peizhen, Longyuan’s investor relations manager, said the company is checking the cases and declined to comment further.
Sinovel forecast last month that net income was about 19 million yuan in 2014. The company had a loss of 3.45 billion yuan a year earlier.
— With assistance by Feifei Shen