Clipper and UTC have reached agreement for UTC to guarantee Clipper wind turbines warranties for selected new business. The guaranty arrangements have been approved by the Boards of both companies, and formal guaranty agreements between Clipper and UTC are currently being finalized.
A circular outlining the Company’s proposal to enter into the warranty guaranty and its related agreements will be distributed for shareholder approval in the current month. The amount of warranty support to be provided will be determined on a case by case basis for each new customer order. The Liberty wind turbine warranty support from UTC will provide increased confidence to customers and their project finance institutions that Clipper has the ability and credit strength to fulfill its contractual warranty commitments.
The Company and UTC are also entering into a formal intellectual property and technical assistance license agreement. The agreement formalizes the terms and conditions that allow UTC to provide technical assistance and grant rights in UTC intellectual property for use and application in Clipper’s business and jointly developed technology.
UTC currently owns 49.9% of the outstanding shares of Clipper resulting from an investment in new and existing shares of Clipper in January 2010. Since then, Clipper and UTC have formed teams to enable Clipper to access UTC’s support and expertise in a number of areas, including technology, sales, manufacturing, product quality and other industrial processes.
These efforts include a relationship with Pratt & Whitney Power Systems (“PWPS”), a manufacturer and distributor of gas turbine power plants, that will enable Clipper to leverage the PWPS distribution network to sell and service Clipper’s 2.5 MW Liberty wind turbine, as well as provide integrated turnkey project solutions to global customers. The PWPS relationship expands Clipper’s wind energy market reach from predominantly U.S. based, to major global economies and emerging markets.
The above activities are indicative of the collaboration between Clipper and UTC as well as UTC’s confidence in Clipper’s technology and business opportunities.
Mauricio Quintana, President and CEO of Clipper, commented: “The U.S. wind market remains challenging. Accordingly, the Company continues to put tremendous effort into seeking new orders, particularly in selected emerging markets where we believe the best growth opportunities exist for Clipper.
The increased UTC support of Clipper’s future turbine warranty obligations, along with the technology assistance, further signifies the strength of the relationship between Clipper and UTC, and reinforces UTC’s confidence in Clipper’s technology and business potential. Also, through a new cooperative sales collaboration with one of the world’s leading sales, service and integrated turnkey solution providers, Clipper will expand its reach and breadth to customers worldwide.”
Clipper Windpower, Inc., is a company engaged in wind energy technology, wind turbine manufacturing, and wind farm development. The Company designs advanced wind turbines, manufactures its 2.5 MW Liberty wind turbine, and actively develops wind power generating projects in the Americas and Europe.
Clipper’s primary offices are in the United Kingdom and in California, USA. The Company’s 330,000 square foot manufacturing and assembly facility for land-based wind turbines is located in Cedar Rapids, Iowa; its development centre for offshore wind turbine development is located in Blyth, UK. Clipper Windpower, Inc. is a subsidiary of Clipper Windpower Plc.
The ordinary shares of Clipper Windpower Plc are traded on AIM of the London Stock Exchange and are not registered under the U.S. Securities Act of 1933, as amended. Such shares may not be offered or sold to residents of the United States or to persons acting on their behalf, or to other persons who are "United States Persons" within the meaning of Regulation S as promulgated under the Securities Act of 1933, unless such shares have been registered under the Securities Act or there is an available exemption from registration. Clipper’s ticker symbol is CWP.
