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Trinity Structural Towers files litigation against Suzlon

Trinity Structural Towers Inc has filed a breach of contract law suit against Suzlon Wind Energy Corporation for failure to comply with its purchasing obligations for structural wind turbine towers from TSTI pursuant to the 2008 Supply Agreement between the two companies.

By Kari Williamson

In accordance with the agreement, Suzlon agreed to purchase approximately US$377.3 million worth of TSTI-manufactured 80 m wind turbine towers on a scheduled basis through 2011. Following the execution of the Agreement, TSTI and Suzlon mutually agreed to amend the Agreement on two separate occasions, ultimately resulting in an additional US$123.8m worth of wind turbine towers to be purchased and extending the delivery timeframe of wind towers through 2013.

To date, TSTI has produced and delivered only US$88.6m worth of wind towers, excluding price adjustments related to materials costs, applicable to the aggregate wind tower purchase obligation agreed upon under the agreement.

TSTI claims that Suzlon has breached its contractual purchase obligations for 2010 and 2011 by failing to take delivery of its obligated number of wind turbine towers during this period. In addition, Suzlon has not yet secured its 2012 and 2013 production space for its obligated purchase of wind towers in each of these years.

Suzlon’s remaining purchase commitment under the Agreement, as amended, represents approximately US$412.5m of TSTI’s total wind tower backlog of approximately US$929.5m as reported at the end of September.

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