US energy solutions provider AMSC and Chinese wind power company Sinovel have entered into a settlement agreement to resolve all existing commercial disputes between the pair.
Sinovel was found guilty in January by a US District Court in Madison, Wisconsin, of conspiracy to commit trade theft from AMSC and wire fraud. Sentencing is expected on 6 July.
Under the terms of the deal, Sinovel has agreed to pay AMSC an amount in Chinese currency renminbi equivalent to $57.5m, consisting of two instalments.
The first instalment of $32.5m is due by 5 July and the second of $25m within 10 months of the court delivering its first sentence against Sinovel.
In addition, AMSC has granted Sinovel a non-exclusive license for certain AMSC intellectual property to be used solely in Sinovel’s doubly fed wind turbines, although it will terminate the agreement if the terms for the second payment are not met.
AMSC and Sinovel have also agreed to submit withdrawal applications to terminate the various legal proceedings between them, with the right to refile, to the relevant Chinese courts and the Beijing Arbitration Commission.
AMSC president and chief executive Daniel McGahn said: “We valued the past cooperation between Sinovel and AMSC, which was heralded as the example of Sino-US cooperation in the new energy area.
“Through Sinovel’s and AMSC’s joint efforts, we have signed a settlement agreement to resolve the previous disputes in a constructive manner that we believe will enable us to move on with our respective businesses. This closes a challenging chapter for AMSC.”
Image: sxc
AMSC, Sinovel agree settlement
By EBS