SAN DIEGO, June 17, 2008 (PRIME NEWSWIRE) -- Welwind Energy International Corp (the "Company") (OTCBB:WWEI) announces that it has begun negotiations for a Joint Venture Partnership with YATU Wind Energy Manufacturing Co. Ltd (formerly ENGGA) to manufacture wind turbines internationally and further announces that the two companies have signed a Turbine Supply Agreement (EPC) for 66 Wind Turbines for its Zhanjiang Wind farm Project.
YATU, a developer of several types of wind turbine products, 15 of which have patents pending, said Monday it has agreed to begin negotiating a joint venture partnership with Welwind Energy International Corp. to manufacture and distribute wind turbines on an international level. In regards to the Equipment Purchase Contract (EPC), the company will have all 66 turbines delivered to the Zhanjiang site before October 18, 2009. Unlike the majority of existing wind farms, Welwind will take possession of all 66 turbines without having to wait 2-4 years.
"We are thrilled to not only announce that we intend to have all 66 turbines delivered to our Zhanjiang project before the close of 2009, but are further pleased to be involved in negotiating a joint venture partnership for a stake in the turbine manufacturing sector. This news from our China Corporate Office takes Welwind to a whole new level in the alternative energy marketplace. Not only does the news of a potential Joint Venture allow for us to assist in supplying turbines to a much needed market; the EPC gives the company first priority in getting our projects expedited at an extraordinary pace," says Mr. Feng, Director of Welwind Energy.
With explosive growth for wind power globally, the industry is seeing an ever growing waiting list for the delivery of wind turbines. Many believe that Chinese turbine companies may be part of the solution as China increases production to meet the export demand. The world's wind power industry continues to struggle with the continued demand for turbine supply brought on by increasing oil prices, stricter emission laws and growing concern over climate change.
With the estimate of delivery of a turbine taking place, in some cases not until 2012, panic amongst utility companies, particularly in the UK has not stopped Siemans from signing up new sales orders. The US has already given the company over $2.4 billion in orders this year alone. An unstable regulatory system in the US continues to hamper US turbine production. Unreliable and inconsistent US tax breaks for renewable energy projects has discouraged US manufacturers from increasing capacity. Energy analysts believe that if the US markets are affected by inconsistent US tax breaks and decreased production, China is more than willing to make up the difference.
China has increased tariffs on imported turbines this past May in order to encourage production within their country. Export taxes have been severely cut back on components to allow manufacturers to compete internationally for hard to attain parts. Government rules in China require that all turbines must have at least 70% domestically produced components. This has lead to more manufacturers setting up factories in China. China's largest wind turbine maker recently went through an Initial Public Offering and raised $245 million to fund a huge expansion. LM Glassfiber of Denmark, which has a cooperation agreement with Goldwind, opened their second turbine blade factory in China in October last year.
ABOUT YATU
Guangzhou YATU Wind Energy Manufacturing Co Ltd is the developer of several types of wind turbine products. The company manufactures two series of wind turbine generator systems; a horizontal axis wind turbine and a vertical axis wind turbine. YATU's YT750(750kw), YT850(850kw), 1MW, 1.2MW, 1.5MW turbines will be launched in the international marketplace in conjunction with an aggressive marketing plan to create the best energy company internationally.
ABOUT WELWIND
Welwind Energy International Corp. is committed to providing the best resource option available for renewable energy, protecting our environment, empowering communities, bolstering local economies and respecting the rights of future generations. Welwind Energy International was founded to build, own and operate wind farms on an international scale. The company's goal is to become a leading provider of clean energy products for the residential, business and governmental consumer.
This news release contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance and underlying assumptions and other statements, which are other than statements of historical facts. These statements are subject to uncertainties and risks including, but not limited to, risks set forth in documents filed by the company from time to time with the Securities and Exchange Commission. All such forward-looking statements, whether written or oral, and whether made by, or on behalf of, the Company, are expressly qualified by these cautionary statements and any other cautionary statements which may accompany the forward-looking statements. In addition, the Company disclaims any obligation to update any forward-looking statements to reflect events or circumstances after the date hereof.