Massachusetts-based AMSC, a solutions provider serving the wind energy and power grid industries, has announced new agreements with India-based Inox Wind Ltd. that strengthen the collaboration between the two companies.
Under a long-term supply contract, AMSC will provide Inox with electrical control systems (ECS) for Inox's entire 2 MW wind turbine product line. Full deliveries under the agreement are expected to begin during the first quarter of fiscal 2016.
Under a separate agreement, Inox will be allowed to internally manufacture a limited portion of the ECS requirements for its 2 MW product line as a second source based on AMSC's technology.
The aggregate value of these agreements is approximately $210 million over the next three to four years, when the specified deliveries under this contract are expected to be completed. AMSC says that once the specified deliveries under the supply contract are completed, the company expects further revenues for at least an additional three-year period, during which AMSC will provide Inox with the majority of its 2 MW ECS requirements under a preferred supplier arrangement.
The relationship continues in developing new wind turbine products focused on the Indian market. AMSC and Inox entered into a heads of agreement to collaborate on the development of a 3 MW wind turbine to extend to Inox's product line. AMSC would develop a 3 MW turbine design under a license agreement to be negotiated with Inox.
"These agreements represent an important milestone for AMSC and solidify our belief that Inox is a trusted and valued long-term partner," says Daniel P. McGahn, president and CEO of AMSC.
