Windflow Moving Forward on First UK Turbine

NZX and Media Statement

24 July 2012

Windflow Moving Forward on First UK Turbine

Following shareholder approval at its recent Special General Meeting, Windflow Technology Ltd (WTL) announces the commencement of assembly of the first Windflow 500 turbine which is destined for Westray, one of the Orkney Islands in Scotland.

The first drawdown has been made against the loan agreement with WTL shareholder David Iles, who has approved the first of up to three projects to receive the funding. 

The nacelle of the turbine is being assembled in WTL’s Christchurch nacelle assembly factory and the tower will be sourced in the UK. The project target date is for the turbine to be installed and commissioned before the end of 2012.  WTL is now working with its suppliers to confirm that schedule.

The turbine project is owned by a special purpose vehicle ‘Hammer Westray LLP’ which is a limited liability partnership between Windflow Hammer Ltd, and the local Scottish developer, Colin Risbridger.  Windflow Hammer Ltd is a wholly-owned subsidiary of Windflow UK Ltd which is a wholly-owned subsidiary of WTL.

The company is currently relying on further turbine sales in the UK to meet its on-going cashflow requirements, particularly those associated with warranty obligations to NZ Windfarms.  Developing the sales pipeline therefore continues to be a primary focus in the Company’s previously stated 1-2-3 strategy. Further updates on sales progress will be provided as sales emerge.

The Westray turbine is important as a demonstration turbine and is hoped to assist further sales.

ENDS