ZHANJIANG, China, Sept. 13, 2010 (GLOBE NEWSWIRE) -- Welwind Energy International Corp. (OTCBB:WWEI) (the "Company") is pleased to announce additional interest in the financing for its wind farm projects. After several meetings with GUANGDONG YATU INDUSTRY INVESTMENT CO., LTD ("GYII"), Mr. Feng, Director of Welwind Energy and Mr. Deng, Chairman of GYII, have entered into a formal Investment Cooperation Agreement ("ICA"). The agreement is several fold and includes the following:
- Both parties will form a strategic partnership to jointly develop wind farm projects in Zhanjiang, Inner Mongolia, and other districts of China.
- GYII agrees to invest RMB 110 million Yuan ($16.3 MILLION USD) to jointly develop Welwind's first-phase 49.5MW wind farm project located in Zhanjiang of Guangdong Province. The GYII will hold a 20% share of the invested project.
- GYII agrees to appoint Welwind as its agent in North America for selling its new multi-gen, single tower, vertical axis wind turbine generator systems developed by GYII.
- Both parties will establish a new turbine generator system assembly plant, for which each party own a 50% share.
- Welwind agrees to use 12 new multi-gen, single tower, vertical axis wind turbine generator systems, developed by GYII, for Welwind's first-phase 49.5MW wind farm project located in Zhanjiang. Welwind previously agreed to use an older version of YATU's turbines for the company's entire Zhanjiang project.
- Welwind agrees to assist GYII in obtaining all certifications necessary for launching the new turbine systems into the North American marketplace.
This agreement solidifies a relationship between the two companies that has been fostered over several years. Back in 2008 Yatu Wind Company (the developer of Welwind's Zhanjiang turbine) and Welwind Energy had an agreement for Welwind to assist in the distribution of Yatu's turbines on an international level in conjunction with the initial build-out of the Company's Zhanjiang project. With the Zhanjiang project close to beginning its build-out, the parent company of Yatu Wind Energy Company has agreed to establish a financial and business relationship with Welwind.
The investment of $16.3 Million USD in the Zhanjiang project, along with a capital injection for the Mongolia and all other China based wind farm projects, will allow Welwind to expedite its business model in the China market.
The establishment of a joint venture turbine assembly plant, along with becoming GYII's partner in the distribution of turbines in the North American market place, will be two new revenue streams for Welwind Energy. The company plans to begin the process of developing the business models and valuation reports for each of these new divisions immediately along with establishing a presence within the North American market for Yatu's single tower vertical axis wind turbine.
"GYII's financing and investment agreement is one of several financing options the company has been looking at for the Zhanjiang and Mongolia projects. We feel that this relationship is not only the best for Welwind on a financing level, but most importantly, beneficial on a long term business level," says Larry McNabb, President of Welwind. He adds, "We have always appreciated the relationship the company has had with Mr. Deng and look forward to a bright future partnership for both organizations. GYII is a prominent organization in China with a strong foothold in several industries. This is an organization that we are confident in doing business with."
Guangzhou YATU Wind Energy Manufacturing Co Ltd is the developer of several types of wind turbine products. The company manufactures two series of wind turbine generator systems; a horizontal axis wind turbine and a vertical axis wind turbine.
For further information on Guangzhou Yatu Wind Energy Company, its significant Research and Development Academy and Consultants from several North American Universities, please visit the company's website at: http://www.yatuwind.com
Welwind Energy International Corp. is committed to providing the best resource option available for renewable energy, protecting our environment, empowering communities, bolstering local economies and respecting the rights of future generations. Welwind Energy International was founded to build, own and operate wind farms on an international scale. The company's goal is to become a leading provider of clean energy products for the residential, business and governmental consumer.
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This news release contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance and underlying assumptions and other statements, which are other than statements of historical facts. These statements are subject to uncertainties and risks including, but not limited to, risks set forth in documents filed by the company from time to time with the Securities and Exchange Commission. All such forward-looking statements, whether written or oral, and whether made by, or on behalf of, the Company, are expressly qualified by these cautionary statements and any other cautionary statements which may accompany the forward-looking statements. In addition, the Company disclaims any obligation to update any forward-looking statements to reflect events or circumstances after the date hereof.
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