Hanwei updates wind power business



    TSX: HE

    VANCOUVER, Oct. 30 /CNW/ - Hanwei Energy Services Corp. ("Hanwei" or the
"Company") today provided an update on its wind power business. The Company
estimates that turbine production for 2008 will total approximately 40
turbines, based on its component delivery schedule. As previously reported,
the Company has delivered 12 1.5MW turbines (four in Q1 2008, eight in Q2
2008), three sets of wind turbine blades and 30 towers (together in Q4 of
2007) under its initial contract with Daqing Deta Electric Co. Ltd. ("Deta").
Hanwei has completed an additional 8 turbines and 17 blades (5 and 2/3 sets)
related to its initial contract for installation at Ruihao's wind farm and
expects to deliver them in the fourth quarter of 2008.
    Nine of the twelve turbines and towers and the three sets of turbine
blades delivered to date have been installed at Heilongjiang Ruihao Energy
Technology Co., Ltd.'s ("Ruihao") wind farm in Heilongjiang province, China
and connected to Ruihao's substation and the local electrical grid for
calibration and field-testing.
    The Company has commenced production of turbines under the new 200MW
contract with Ruihao, which was a component of its previously announced
acquisition of Deta. Hanwei has integrated the Deta management team into its
operations and is supplying equipment to Ruihao while awaiting final
regulatory approval for the acquisition of Deta. Hanwei expects to complete
and deliver an additional 20 turbines during the fourth quarter of 2008, for a
total of 40 for all of 2008. Hanwei also expects to complete and deliver an
additional 23 blades during the fourth quarter of 2008 for a total of
approximately 40 blades (13 and 1/3 sets) for all of 2008.
    To support the new 200MW order, Hanwei has invested approximately
$31 million in prepaid inventory to mitigate some of the delays caused by high
demand for component parts throughout the wind power industry. Hanwei has been
successful to date in accessing working capital through debt facilities
established with China based banks and lenders to support the ongoing capital
requirements of the wind power operations. To improve supply chain management,
Hanwei has created a dedicated purchasing and logistics group, which has
successfully established supplier relationships with key China-based component
and systems manufacturers. The group will manage all inventory procurement and
coordinate key component deliveries.
    Since establishing its wind power business in 2007, Hanwei has
continuously improved its management, engineering, and production
capabilities. Through a number of key hires recruited from some of China's
largest wind power and engineering firms, Hanwei has assembled an experienced
management team that has successfully ramped up production capacity, improved
supply chain management and established numerous quality and production
controls. The wind segment now has 400 employees, including a production
workforce of approximately 275 trained staff, and 46 management and
engineering personnel.
    Hanwei currently has 12 turbine assembly workstations in its 50,000
square meter production facility in Daqing. At full capacity, and subject to
supply chain constraints and working capital, each station is capable of
producing a maximum of three 1.5MW turbines per month, which would allow
Hanwei to ramp-up production to a maximum capacity of approximately 400
turbines per year.
    The Company has also established capacity to produce an average of one
wind turbine blade per day using three operating moulds. Two of the moulds
utilize Aerodyn Energiesysteme GmbH technology, licensed by Hanwei, and one
utilizes Chinese technology licensed by Hanwei, through the acquisition of
Deta. Production capacity for wind turbine blades is expected to increase due
to production rate improvements as the process is streamlined and the delivery
and installation of three additional Aerodyne moulds over the next six months.
    "The China market for wind power equipment was over 3000 MW or $3 billion
in 2007 and showed strong growth in 2008. Even in the current global economic
slow down we expect China's wind power market to remain strong due to
continued growth in China's per capita energy consumption and Chinese
government support, including targets for wind power installations,
preferential tax policies and debt funding from policy driven state owned
banks. After launching our wind power equipment business in mid-2007 Hanwei
has recruited a strong management team, acquired technology licenses for
turbines and blades and established a manufacturing plant with capacity to
grow our business into 2009 and the future. We plan to grow into a leading
provider of wind power equipment in China, and to that end, we are working
hard to expand our customer base and continually improve our technology."
    To view recent photographs of the Company's wind turbine, blades and
towers, please visit the Company's website using the following link:
    http://www.hanweienergy.com/company/wind-power-photos.html

    About Hanwei Energy Services Corp.

    Hanwei Energy Services Corp. provides high value products and services
for the energy sector in China and the Asia region. Hanwei serves its major
energy customers through manufacturing facilities in China, producing products
for the oil, coal power and wind power industries. Hanwei is focusing on
providing products and services that address the growing need for improved
energy efficiency and environmental protection in China and the Asia region.
www.hanweienergy.com

    FORWARD LOOKING INFORMATION

    Certain information in this news 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
information relating to the completion of Deta acquisition, status of and
progress under contracts to provide turbines and blades and production
capacity and production estimates for turbines and blades. The forward-looking
information is based on certain assumptions, which could change materially in
the future, including the assumption that the Deta acquisition will complete
on time and without material amendment to its terms, that the Company will be
able to effectively complete contracts for delivery of turbines and blades on
time and on budget, and that equipment necessary to increase production
capacity will be delivered when expected. The forward-looking information in
this news release describes Hanwei's expectations as of the date of this news
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 set out in Hanwei's Annual Information Form and Management's
Discussion and Analysis referred to below, as well as the risks that the
acquisition of the equity interest in Deta may not complete, that the Company
may not be able to execute on its expectations to deliver products in
accordance with purchase orders or at all, that production of turbines in 2008
may not meet estimated projections and that capacity for blade production may
not be increased to the level expected or at all. When relying on Hanwei's
forward-looking information to make decisions, investors and others should
carefully consider the foregoing factors and other uncertainties and potential
events. Hanwei cautions that the foregoing list of material factors is not
exhaustive and is subject to change. For additional information with respect
to certain of these and other factors, refer to the risk factors section of
Hanwei's Annual Information Form dated April 3, 2008 filed with Canadian
securities regulators, and the risks discussed in Hanwei's Management's
Discussion and Analysis dated May 14, 2008 for the three months ended March
31, 2008, both of which are available on SEDAR at www.sedar.com.

    THE FORWARD-LOOKING INFORMATION CONTAINED IN THIS NEWS RELEASE REPRESENTS
THE EXPECTATIONS OF HANWEI AS OF THE DATE OF THIS NEWS 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 HANWEI MAY ELECT TO, IT DOES NOT
UNDERTAKE TO UPDATE THIS INFORMATION AT ANY PARTICULAR TIME EXCEPT AS REQUIRED
IN ACCORDANCE WITH APPLICABLE SECURITIES LEGISLATION.





For further information:

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

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HANWEI ENERGY SERVICES CORP.

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