As part of the agreement, Fuhrlander will assist GaoKe in developing a production plant under construction in Shenyang, China, that emulates Fuhrlander’s plant in Germany. The construction is expected to be complete in mid-2008.
Fuhrlander will also work closely with GaoKe to ensure that the wind turbines are produced to specifications. Under the technology license, GaoKe has the right to any advancements or improvements that Fuhrlander makes to its 2.5MW series wind turbine without charge.
To secure these rights, GaoKe has agreed to pay Fuhrlander approximately $13.9 million, which covers the license, training and a fixed royalty. Fuhrlander will also receive a minority percentage of the gross profit generated from the sale of the first 100 wind turbine units manufactured by GaoKe.
The sales price of the 2.5MW wind turbine is expected to be around $2.7 million to $3.2 million with 8-12% gross margins. GaoKe will have the capacity to produce a maximum of 300 2.5MW wind turbines on an annual basis, after the first phase of its wind production facility is completed.
