AMSC has announced several agreements with Inox Wind Limited (Inox) that strengthen the collaboration between the two companies. The company has entered into a long-term supply contract (Supply Contract) with Inox. Under the Supply Contract, AMSC will provide Inox with electrical control systems (ECS) for Inox's entire 2MW product line.
Full deliveries under the Supply Contract are expected to begin during the first quarter of fiscal 2016. Under a separate agreement, Inox will be allowed to internally manufacture a limited portion of the ECS requirements for its 2MW product line as a second source based on AMSC's technology. The aggregate value of these agreements is approximately US$ 210 million over the next three to four years, when the specified deliveries under this contract are expected to be completed. Once the specified deliveries under the Supply Contract are completed, further revenues are expected for at least an additional three year period during which AMSC will provide Inox with the majority of its 2MW ECS requirements under a preferred supplier arrangement. AMSC and Inox also entered into a heads of agreement to collaborate on the development of a 3MW wind turbine to extend to Inox's product line. AMSC would develop a 3MW wind turbine design under a license agreement to be negotiated with Inox.
