Home » News » Suzlon North-American arm taken to court in US/news09012012
Suzlon North-American arm taken to court in US/news09012012
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Monday, January 09, 2012
Suzlon Group company, Suzlon Wind Energy Corporation, is facing a lawsuit in the US in the district court of Dallas County, for breach of contract.
Suzlon Wind Energy Corp is the North-American subsidiary of Suzlon Group.
Trinity Structural Towers, Inc (TSTI), a subsidiary of Trinity Industries, announced that it has filed a breach of contract law suit against Suzlon Wind Energy Corp located in Chicago, for failure to comply with its purchasing obligations for structural wind towers from TSTI as per the 2008 supply agreement between the two companies.
Trinity Towers has one of the largest production capacity facilities for fabrication of tubular wind towers in the US and is based in Texas, Dallas.
Background of the dispute:
According to Trinity, as per the agreement, Suzlon had agreed to purchase approximately $377.3-million worth of TSTI-manufactured 80-m wind towers on a scheduled basis through 2011.
Later, TSTI and Suzlon mutually agreed to amend the agreement on two separate occasions, ultimately resulting in an additional $123.8 million worth of wind towers to be purchased and extending the delivery time frame of wind towers through 2013.
TSTI says it has produced and delivered approximately $88.6 million worth of wind towers.
TSTI has claimed that Suzlon breached its contractual purchase obligations for 2010 and 2011 by failing to take delivery of its obligated number of wind towers during this period. Suzlon has yet to secure its 2012 and 2013 production space as per the purchase obligations. This TSTI says has led them to incur damages.
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