American Superconductor Corp. (Nasdaq: AMSC) says it’s looking to recover over $1.2 billion from former customer, Chinese wind turbine maker Sinovel Wind Group, for breach of contract and damages.
The company wants to recover the amount for shipments Sinovel contracted for and then cancelled, along with damages.
In September, AMSC filed multiple lawsuits in various jurisdictions in China, alleging Sinovel stole its intellectual property.
The case highlights an ongoing concern of US firms who fear Chinese companies will co-opt their technologies without contracts and compensation.
In April, Sinovel – AMSC’s largest customer and responsible for 75% of its revenue – refused shipments because of supposedly high inventory levels. AMSC’s stock crashed 45% and the company has been working to recover ever since.
The company is developing a more diverse customer base – which it should have done long ago – for its wind and power grid products. It’s now operating at a loss, but the situation is improving.
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