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Turbine repair costs hit Clipper  

Clipper Windpower shares had the wind taken out of their sails this morning after the wind turbine manufacturer revealed problems with the quality of components used in its turbines.

Clipper said problems with drivetrain assemblies have temporarily slowed turbine shipments. The company is now indicating that 2007 turbine shipments will be reduced to a range of 125 to 145, but expects the shortfall will be recovered next year. In July, Clipper said firm customer orders for its Liberty turbines in 2007 totalled 181.

Field assessment on previously installed turbines indicates that the company may have to pay out $10m to $15m over the next six to twelve months to bring these up to the required standard.

“While the newly imposed quality process adds measurably to the near-term workload, it also establishes greater turbine reliability that will serve us well as we continue to expand future production,” said chairman and CEO James Dehlsen.

“I’m pleased to say that we have had positive comments from our customers on our responsiveness to the situation and the level of diligence that has gone into the remediation program,” he added.


3 September 2007

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