Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

Windfarms, Windflow stoush gets public airing

Windfarms, Windflow stoush gets public airing in tit-for-tat exchange

By Pattrick Smellie

Nov 3. (BusinessWire) - The deteriorating relations between New Zealand Windfarms Ltd (NWF) and its turbine supplier, Windflow Technology Ltd (WTL), are getting a public airing in a tit for tat exchange of statements to the stock exchange today.

NZAX-listed WTL advised the exchange late yesterday that it was threatening legal action against NZW, the only customer so far for its innovative, locally developed two-bladed turbine.

NWF responded this afternoon, describing the threat of a High Court hearing seeking judgement for withheld payments of more than $3.5 million to WTL as "an abuse of process" and asserting its right to set-off losses against amounts invoiced by WTL under its existing contract.

WTL had offered NWF access to an independent expert's report on the performance of the WTL turbines last Thursday, but not on acceptable terms.

NWF would need to be allowed to "appropriately inform the market of the conclusions in that report", chief executive Steve Cross said in a statement to the NZX. WTL says the report gave the turbines a clean bill of health, reduced the number of issues it had any concerns about, and found "no major issues".

It has not released the report to the NZAX at this stage.

WTL says "if NZW continues to withhold payments then WTL will need to take steps to preserve its remaining cash until NZW resumes payment".

That could include slowing down and potentially stopping production at the company's Christchurch manufacturing plant, where a further $20 million to $30 million of turbines are on order from NZW, WTL's chief executive Geoff Henderson told BusinessWire.

"We are making a world beating effort here," said Henderson. "To have it jeopardised like this is a huge learning experience for me as an engineer.

NZW began withholding payments for the two-bladed turbines in August, claiming that it had been a condition of sale that the turbines would have International Electricification Commission certification. The WTL turbines have undergone design modifications as they were developed, meaning that the turbines currently being supplied to NZW's Te Rere Hau development in the Manawatu differ from earlier versions.

WTL had "made efforts to reach a commercial resolution with Windfarms, including commissioning an independent expert review of the Te Rere Hau turbine design differences compared to the final design submission for IEC certification".

(BusinessWire)

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Frog Recruitment: Kiwi Workers Reluctant To Make Business Trips Across The Ditch Despite Trans-Tasman Bubble Opening

When the trans-Tasman travel bubble opens today, many Kiwi companies won't be rushing to buy an air ticket, reluctant to cross the ditch to do business. The latest survey conducted by leading recruitment agency, Frog Recruitment of nearly 1,000 New Zealand ... More>>

Tourism: Employers Welcome Back Working Holidaymakers

Tourism businesses gearing up for the return of Australian visitors from next week will be relieved to learn that they will also have access to an offshore pool of much-needed job candidates, Tourism Industry Aotearoa says. Tourism employers around ... More>>

Commerce Commission: Latest Broadband Report Confirms Improved Performance Of Premium Fibre Plans

The latest report from the Commerce Commission’s Measuring Broadband New Zealand programme shows that the performance of Fibre Max plans has improved substantially. This follows a collaboration between the Commission, its independent testing partner, ... More>>

Air New Zealand: Capital Raise Deferred

Air New Zealand has decided to defer its planned capital raise to later in 2021 allowing more time to assess the impacts of recent developments on the airline’s path to recovery. 'We’ve seen some clearing of COVID-19 clouds recently, with ... More>>


Stats NZ: Prices For Transport And Housing Rise In March 2021 Quarter

Higher prices for transport and housing led to a 0.8 percent lift in the consumers price index in the March 2021 quarter, Stats NZ said today. Prices for getting around rose in the March quarter. Transport prices rose 3.9 percent, the biggest quarterly ... More>>

Stats NZ: New Report Shows Impact Of Demands On Land In New Zealand

A new environmental report released today by the Ministry for the Environment and Stats NZ, presents new data on New Zealand’s land cover, soil quality, and land fragmentation. The land cover data in the report, Our land 2021 , provides the most ... More>>

ALSO:

Stats NZ: March Card Spending Rebounds Despite COVID

There was a lift in retail card spending in March following a fall in the lockdown-disrupted February month, Stats NZ said today. Seasonally adjusted retail card spending rose by $53 million (0.9 percent), compared with February 2021. Visit our website to read ... More>>