Hanwei announces letter of intent to supply wind power equipment



    TSX: HE

    VANCOUVER, April 22 /CNW/ - Hanwei Energy Services Corp. ("Hanwei" or the
"Company") is pleased to announce that it has signed a letter of intent
("LOI") with the Baotou Development and Reform Commission ("BDRC") and Beijing
Kunding Xunlei New Energy Technology Ltd. ("Beijing Kunding") to provide wind
power turbines and blades for a 400 MW wind farm located approximately 100
kilometres from Baotou, Inner Mongolia Autonomous Region, China.
    Under the non-binding LOI, it is expected that the parties will cooperate
to develop a 400 MW wind farm under certain terms and conditions including the
following:

    
    -  It is expected that Hanwei will establish a wind power subsidiary in
       Baotou and the subsidiary will build a manufacturing facility in the
       Baotou region with an initial capacity of at least 200 turbines and
       blade sets per annum; that Hanwei will use its best efforts to
       complete construction of the facility before the end of 2010; and that
       Hanwei will use its best efforts to expand the capacity of its wind
       power facility to 500 turbines and blade sets per annum before the
       end of 2012.
    -  It is also expected that Beijing Kunding will be granted the rights
       to develop and operate the 400 MW wind farm and in connection with
       such grant, it is expected that Hanwei will enter into a contract to
       supply 400 MW of turbines and blades. The terms of the contract,
       including pricing and delivery schedules, are subject to negotiation.
    -  In addition, it is expected that the BDRC will facilitate all
       government approvals for the wind farm and manufacturing facility and
       will assist Hanwei to win additional orders for its Baotou wind power
       facility.
    

    Hanwei, the BDRC and Beijing Kunding are engaged in ongoing discussions
to define the terms for binding agreements, and set out timelines for
construction of the wind power facility and delivery of the turbines and
blades. Hanwei does not expect the LOI to have a material impact on its
funding needs for 2009 or the guidance it provided for 2009 with the release
of its 2008 financial results.
    "With this LOI, Hanwei is at the early stages of securing its second
major customer in the wind power business. Hanwei faces significant challenges
to move the LOI to formal contracts and start delivering wind power equipment.
For example, the BDRC and Beijing Kunding have requested that Hanwei deliver 2
MW to 3 MW turbines," said Fulai Lang, CEO and President of Hanwei. "The
rewards for success are tremendous, with Hanwei building market share and
establishing a base in the Baotou region, which is estimated to host over 30
percent of China's wind power resource."

    
                         FORWARD-LOOKING INFORMATION
    

    Certain information in this press release is forward-looking within the
meaning of certain securities laws, and is subject to important risks,
uncertainties and assumptions. This forward-looking information includes,
among other things, information with respect to the entering into formal
contracts, the development of a 400 MW wind farm, the establishment of a
subsidiary in Baotou, the construction of a manufacturing facility in the
Baotou region, the granting of wind farm development and operational rights to
Beijing Kunding, the contracts to supply turbines and blades, the facilitation
of government approvals, and additional orders for a Baotou facility. The
forward-looking information is based on certain assumptions, which could
change materially in the future, including the assumption that formal
contracts will be entered into among the parties, that a subsidiary in Baotou
and a manufacturing facility in the Baotou region will be established, that a
400 MW wind farm will be developed, that rights will be granted to Beijing
Kunding to develop and operate a wind farm, that government approvals will be
obtained, and that additional contracts or orders for turbines and blades and
for the Baotou facility will be procured. The forward-looking information in
this press release describes the Company's expectations as of the date of this
press release. The results or events anticipated or predicted in such
forward-looking information may differ materially from actual results or
events. Material factors or risks which could cause actual results or events
to differ materially from a conclusion in such forward-looking information
include the risks that the discussions subsequent to the LOI may not result in
formal contracts, the Company may not be able to execute on its expectations
to deliver products in accordance with the LOI or any resulting formal
contract, the Company has not yet developed a 2 MW to 3 MW turbine, the
Company is unable to establish a subsidiary or manufacturing facility in
Baotou or the Baotou region, the Company will be able to secure additional
working capital to support such growth, the Company is unable to procure
contracts to supply turbines and blades and the additional orders for a Baotou
facility, and the necessary government approvals may be delayed or may not be
obtained at all, as well as the risks set out in the risk factors section of
the Company's Annual Information Form dated March 31, 2009 for the year ended
December 31, 2008 as filed with Canadian securities regulators and available
on SEDAR at www.sedar.com.

    THE FORWARD-LOOKING INFORMATION CONTAINED IN THIS PRESS RELEASE PRESENTS
THE EXPECTATIONS OF THE COMPANY AS OF THE DATE OF THIS PRESS RELEASE AND,
ACCORDINGLY, IS SUBJECT TO CHANGE AFTER SUCH DATE. READERS SHOULD NOT PLACE
UNDUE IMPORTANCE ON FORWARD-LOOKING INFORMATION AND SHOULD NOT RELY UPON THIS
INFORMATION AS OF ANY OTHER DATE. WHILE THE COMPANY MAY ELECT TO, THE COMPANY
DOES NOT UNDERTAKE TO UPDATE THIS INFORMATION AT ANY PARTICULAR TIME, EXCEPT
AS REQUIRED BY APPLICABLE SECURITIES LEGISLATION.





For further information:

For further information: Kim Oishi, SVP of Finance and Business
Development, (416) 804-9228, koishi@hanweienergy.com; Kevin O'Connor, Investor
Relations, (416) 962-3300, ko@spinnakercmi.com

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