Tremendous growth in the wind power industry has investors rushing to stake a claim in the $23 billion wind turbine market. China Wind Systems, Inc. offers a direct way to participate in this rapidly growing clean-energy opportunity. We supply the essential components used in the construction of wind turbines. As part of our strategic vision to position ourselves where the market demand meets our expertise, we have successfully begun leveraging 12 years of experience manufacturing high-precision industrial equipment into producing wind power components. China Wind Systems currently supplies forged rolled rings of less than five meters in diameter, which are used across many industries, including smaller wind turbine units. Our capability and capacity expansion, once completed, will elevate us to the leading position in providing forged rolled rings up to 6.3 meters in diameter for use in 3 MW or higher wind turbine units. The new capability will help remedy the short supply of flanges, gear rims, yaw bearings, gear boxes and shafts used in 1MW-3MW wind turbine units that the wind industry currently faces. These strategic initiatives are consistent with our mission to become a leading supplier to China’s booming wind power industry. Click Here for a Recent Stock Quote for CWSI. The Wind Power Industry According to the Global Wind Energy Council, the wind industry has been expanding at an annual growth rate of 28% over the past ten years. Global cumulative installed capacity has reached 74GW and the level of annual investment about €18 billion. In 2006, wind power investment in China was RMB 16.27 billion yuan, accounting for 9% of the global total. If its growth rate is maintained, China could become the largest wind market in the world.  According to a report compiled by the Chinese Renewable Energy Industry Association and published by China Environmental Science Press, Beijing, 2007, the technically exploitable resource in China is 1,000GW, distributed across the southeast coastal areas, adjacent islands, Inner Mongolia, Xinjiang, the Gansu Hexi Corridor, Huabei and the Qinghai-Tibetan Plateau. China has chosen wind power as an important alternative source in order to rebalance its energy mix, combat global warming and ensure energy security. Supportive measures have been introduced by the government. In order to encourage technical innovation, market expansion and commercialization, development targets have been established for 2010 and 2020, concession projects offered and policies introduced to encourage domestic production. The introduction of the Renewable Energy Law and its accompanying implementation regulations provided solid legal guarantees and clear policy direction for the development of a wind industry in China. Although foreign manufacturers still take the major share of the market, there has been a positive trend towards domestic manufacture. Currently there are more than 40 manufacturers supplying the Chinese market, including domestic owners, joint ventures and foreign companies. Corporate History Led by a highly experienced management team and technical workforce with an average of 15 years experience, China Wind Systems was founded in Wuxi City, Jiangsu province in 1995 by Mr. Jianhua Wu. The Company went public through a reverse merger transaction in November 2007, at which time it changed its name to China Wind Systems and launched its wind energy business by supplying forged rolled rings to the wind industry. Through its affiliates Huayang Dye Machine and Huayang Electric Power Companies, collectively known as the Huayang Companies, the Company also manufactures and sells industrial equipment for use in the textile and coal power industries in China. With clean energy always a priority, China Wind's activity in the coal business centers on offering products that allow power plant operators to produce electricity through a cleaner process than would otherwise be available at a reasonable cost. Mr. Wu founded the Huayang Dye Machine Company in 1995, when the textile and dyeing industries began flourishing in China, as a direct supplier of textile dyeing and finishing equipment to textile producers in China. In 2005, Huayang Electrical Power Equipment was established to supply the coking plants and coal-fired power stations in China with efficiency-producing power equipment that makes the process cleaner. China Wind's coal-related activities clean up existing operations rather than producing more coal-based power. The wealth of technical know-how of the Company's team is immediately applicable to the rapidly growing wind energy sector in China. Corporate Timeline: September 2008 – China Wind Systems signed LOI with Hangzhou Advance Gearbox Group to supply shafts and gear rims June 2008 – China Wind Systems completed construction of supporting facilities January 2008 – China Wind Systems purchased equipment for Phase I new manufacturing facility November 2007 - Entered into a reverse merger transaction to become a U.S publicly listed company that trades under the ticker symbol, CWSI.OB. August 2007- China Wind Systems completed construction of phase I manufacturing facility April 2007 – China Wind Systems recognized the opportunities of being involved in the wind power industry in China and started by supplying forged rolled rings to companies involved in the wind industry in China. 2005 – China Wind Systems began operations of Huayang Electrical Power Equipment Co. Ltd., to manufacture "green" equipment, that were environmentally friendly, for sale to the coking and coal-powered industry in China. 1995 - Mr. Jianhua Wu founded Huayang Dye Machine Co., Ltd., to manufacture equipment for sale to the growing textile dye industry in China. |