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Britain's only listed wind turbine manufacturer today revealed it could be taken over by the end of the year.
Shares in Clipper Windpower, a US company that is listed on AIM and is building a turbine at Blyth on the Northumbrian coast, rose 141⁄2p to 172p. Having more than doubled in value this year, Clipper now has a market worth of £225 million despite losses running in to hundreds of millions of pounds.
In a statement to the Stock Exchange, it said: “The company is in advanced negotiations with a number of multinational industrial companies and financial investors to provide capital to strengthen its balance sheet and to position the company for renewed growth as industry conditions improve.
“The company began a comprehensive capital-raising process during 2009 and has also been approached by a number of strategic investors. We are presently in active negotiations with a number of industrial multinational and financial investors intended to result in a significant investment into the company.
“Based on transaction size and structure, the new capital provider could range from owning a substantial minority position to acquiring the entire company.
“The process has accelerated in recent months as capital markets improved and could potentially lead to a transaction before year-end.”
Clipper has already made fortune for investors including original backer and former chairman Colin Moynihan, the former Tory minister.
Reader views (4)
The reason they had supplier issues was due to the fact that Clipper wasn't paying them for there material and/or parts, so they stopped supply them. Clipper does not have an advanced unit at all, rather old school and failure prone. This is a company that simply has made a mad dash for cash while placing no emphasis on quality in there product or quality assurance towards there customers. I had the opportunity to work for them for two plus years in hopes they would try to change direction, much to no avail they have done nothing with design or quality issues. This also has nothing to do with the statement young company, they just simply have a very poor product! Clipper is utilizing the same principals in there off shore units as the on shore units, failure is and will be eminent. Research the design and keep in mind just because you see a turbine with it's blades spinning doesn't necessarily mean it is producing power! Research and possibly check out the Topix web site and clipper comments, one individual found a NASA research site and made some very eye opening comments, although there are several worth reading!
- Jr, IC US, 05/10/2009 02:48
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Ng.
You make my point: "this is a VERY young company". With no offshore experience and a fairly dubious history (look at the balance sheet and the history).
We have seen all too many carpet-baggers in this region
and CW sounds all the warning bells: an over-extended, debt-ridden company with a poor record in the US and no offshore experience.
The windpower business is a mature one in Europe, we have been building commercial turbines for some 30 years.
I would feel more confident if we were getting into bed with companies such as Siemens, REpower or Vestas that actually have some experience of offshore engineering.
As those companies will tell you, offshore turbines are a different game to onshore, they demand a level of engineering that has challenged companies like Siemens and Vestas (viz the problems with the offshore V90). Enercon, a highly successful builder, don't even go there.
The taxpayer, through Government and Regional Development grants, has given nearly £10 million to CW. Only a handful of jobs have so far resulted.
- N. Lys, Berwick, UK, 01/10/2009 16:20
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@ N. Lys: As someone who has had first-hand knowledge working with Clipper (and has woked on them), I can honestly say these are easily the most advanced turbines around-- and I've been in pretty much all of them.
Sure, they had problems, but it was largely due to some external parts suppliers. Also, you have to remember this is a VERY young company. To expect someone to deliver a new turbine design without any initial problems is a bit unrealistic. Since the begining of the year, their turbines have been steadily working out the bugs as far as I can tell.
By the way, the reason the Queen is throwing money at them to develop a marine turbine is because (unless you haven't noticed) none of the other renewable companies are set to hire workers in the UK. Didn't Vestas just pack up shop and move out of there?
- Ng, CA, US, 30/09/2009 15:39
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What an Alice in Wonderland world we live in.
Clipper Windpower has yet to build anything in this country. We are told that they are building a giant offshore turbine, though they lack any experience in the offshore market and, according to the US press, have had endless trouble in trying to produce a reliable onshore turbine.
Their flagship turbine was described in 'Power' magazine in the following terms: "Clipper Windpower, a California-based wind turbine manufacturer, is in deep trouble with its top-of-the-line, 2.5-MW Liberty machine, which is experiencing quality control and apparent design problems, and with the company's financial performance." (January 2008).
In February this year, the company laid off 11% of its workforce in the US. Some of them claim that there are ongoing problems with gearboxes and blades.
They continue to make huge losses, yet Government and the regional development agency One NorthEast are throwing money at them. And you tell us that Mr Moynihan has made a fortune from his investment in the company.
That's the wind bubble, I guess.
- N. Lys, Berwick, UK, 30/09/2009 12:52
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