Hanwei Energy Services Corp said it agreed to sell most of its wind power equipment inventory to a Chinese customer for up to C$18 million ($18.4 million), sending its shares up 12 percent.
The company, which has a market capitalization of about C$17 million, said it received an initial amount of C$3 million from the customer and will get another C$1.5 million on completion of a final detailed inventory valuation.
Hanwei makes fiberglass reinforced plastic pipe (FRP) products for oil and gas infrastructure industries, and has a wind power segment that makes propellers and assembles wind turbines for sale mostly in China.
“The company is focusing its ongoing sales, engineering and manufacturing efforts on its core FRP pipe business, and therefore will not be manufacturing any new wind energy equipment,” Hanwei said in a statement.
Shares of the Vancouver, British Columbia-based Hanwei were trading up 2.5 Canadian cents at 24 Canadian cents on Tuesday on the Toronto Stock Exchange. ($1 = 0.976 Canadian Dollars)
