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Dallas, Texas Firm Sues Suzlon over Wind Power Supply Deal
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A wind turbine manufactured by Suzlon. (Suzlon photo)
  • United States

    Dallas, Texas-based wind tower producer Trinity Industries has sued India-based turbine manufacturer Suzlon Group, alleging breach of contract in a $501.1 million supply agreement between the two companies.

    Trinity Structural Towers, Inc., the U.S. company’s subsidiary, claims Suzlon failed to comply with purchasing obligations related to $412.5 million worth of 80-meter towers. 

    TSTI filed the lawsuit against Chicago-based Suzlon Wind Energy Corp., Suzlon’s North American subsidiary in district court in Dallas County. 

    Trinity claims Suzlon agreed in 2008 to buy $377.3 million of turbine towers through 2011. The companies later amended the deal twice, adding another $123.8 million worth of towers to the purchase agreement and extending it to 2013. 

    “To date, TSTI has produced and delivered approximately $88.6 million worth of wind towers, excluding price adjustments related to materials costs, applicable to the aggregate wind tower purchase obligation agreed upon under the agreement, as amended,” Trinity said in a press release.

    Trinity said in that statement that Suzlon breached the original deal and “has not yet secured its 2012 and 2013 production space for its obligated purchase of wind towers in each of these years.”

    The U.S. firm said the outstanding towers represent $412.5 million of its total $929.5 million product backlog as reported Sept. 30. 

    “TSTI has incurred, and continues to incur, damages as a result of Suzlon’s alleged breach of its purchase obligations,” said Trinity, which added that the company “remains willing and able to perform its obligations under the agreement, as amended.” 

    A Suzlon spokesperson told Recharge, an energy journal, that the dispute is “a direct consequence of the downturn in the U.S. market over the past two years. Trinity continues to be a preferred supplier for Suzlon and we are committed to finding a mutually agreeable solution.”

    Suzlon in late 2010 idled its Minnesota blade plant, opened four years earlier, after orders dried up.

    However, Suzlon recently announced a 120MW supply deal for an unidentified project in the “western United States,” and its German REpower unit has booked several contracts in North America. 

    Trinity is part of a coalition of U.S. wind tower companies that recently asked the U.S. government to take anti-dumping measures against Chinese and Vietnamese rivals.

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