China Wind Systems, Inc. (CHWY.OB), a supplier of industrial equipment to the wind power industry in China, is moving its stock listing to the NASDAQ Stock Market from the OTC bulletin board. The stock will trade under the new stock symbol CWS, starting Tuesday, December 29, 2009.
The company supplies forged rolled rings to the wind power industry and other industries in China and believes it is well-positioned to take advantage of China's rapidly growing wind industry.
Wind power is emerging as a strong play in the global energy turf. The global wind market for turbine installations was worth about $47.5 billion in 2008, according to the Global Wind Energy Council or GWEC.
China's total wind power capacity doubled for the fourth year in a row in 2008 to over 12 gigawatts or GW of total installed capacity and is expected to nearly double again in 2009, representing a third or more of the world's total new installed capacity for the year, according to the Chinese Renewable Energy Industry Association.
The company says there is a shortage in supply of large-sized forged products for wind turbines and any increases in wind turbine size will only prolong this supply constraint.
Seeing its opportunity arising out of this industry bottleneck, the company plans to provide forged components, including forged rolled rings with a larger diameter to meet the perceived needs of the wind power industry. In this connection, the company has completed its phase I expansion and now has the capacity to produce 40,000 tons of forged products.
With the shift in focus of its sales effort toward the wind segment, the company increased sales of forged rolled rings to the wind power industry by 158.4% to $13.24 million for the nine months ended September 30, 2009 from $5.13 million in the comparable period in 2008. Sales of forged rolled rings accounted for 41.4% of the company's consolidated revenues in fiscal 2008, rising to 69.5% for the nine months ended September 30, 2009.
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