Windflow Slims Down
14 April 2011
Construction of the Te Rere Hau wind farm at
Palmerston North is now approaching the time when all 97 Windflow 500 turbines will
be installed, commissioned and handed over to NZ Windfarms Limited, well ahead
of the contracted completion date.
Interest in the Windflow 500 turbine continues to
grow in Britain with over 500 active enquiries to date. The UK planning process is slow and to date
none of the anticipated orders have been able to be confirmed, or deposits paid
to WTL. Furthermore the UK government
has created delays by reviewing the Feed-in-Tariff scheme for renewable energy
which stimulated the recent demand for the Windflow 500.
The Long Gully wind farm 25 Windflow 500 turbine
consented in Wellington has been deferred by Mighty River Power for the time
being.
Until WTL has received further confirmed orders and
deposits, following the completion of Te Rere Hau wind farm, the Directors have
decided that it is in the company’s best interest to slim down the company’s operations
for the time being, so as to manage its cash burn, with the expectation of rebuilding
the company’s production capacity again on receipt of the expected orders.
Accordingly WTL’s management will now commence
discussions with its staff about the process for achieving reductions.
Company founder, director and CEO Geoff Henderson
said, “this is a difficult decision that the board has come to. Clearly there are good prospects internationally
and (in the medium term) in New Zealand for the world-class technology we have
developed. It has the best
power-to-weight ratio in the industry and is now IEC-certified for the windiest
and most turbulent sites. It has proved
itself with over 130 turbine-years track record in the gales and regular
hurricane-force winds of Te Rere Hau. It
is ironic that we now have to slim down for the first time seven months after
gaining IEC Certification. The Windflow
board are determined to stay the course and view this as a temporary measure
due to macro-economic forces.”
As reported in the Company’s recent six-month
report, because of these delays in the receipt of orders and also to accelerate
the Company’s development into the UK and US markets, the directors are now
exploring avenues for further capital raising. The Company has received a number of overtures
in recent years from overseas companies interested in licensing Windflow’s
intellectual property. Windflow is now looking at these opportunities to
develop additional revenues.
For further information:
Geoff
Henderson CEO/Director
Windflow Technology
Ph 03 365 8960