BUSINESS
06/14/2011 12:01 EDT | Updated 08/14/2011 05:12 EDT

Hanwei Energy Strikes $18-Million Deal To Sell Wind Power Equipment To China Company

CP

THE CANADIAN PRESS -- VANCOUVER - Hanwei Energy Services Corp. announced a deal Tuesday to sell the majority of its current wind power equipment inventory to an unidentified Chinese customer for $18 million.

Shares in the Vancouver-based company rose on the news, gaining 2.5 cents, or 11.6 per cent, to trade at 24 cents in morning trading on the Toronto Stock Exchange.

Hanwei (TSX:HE) has already received $3 million from its customer, and another $1.5 million will be paid once they have evaluated the inventory and established a staged payment and shipping plan.

Hanwei makes high-pressure, fibreglass reinforced plastic pipe products. Its customers around the world are mainly in the energy and infrastructure industries.

The company is focusing its attention on its core pipe business and is no longer making wind energy equipment.