A US wind power company which hopes to manufacturer the world’s biggest turbines at a new factory on Tyneside is in takeover talks with its largest shareholder.
Clipper Windpower has suffered a dramatic drop in sales for the first six months of this year.
The company, based in California and listed on the London Stock Exchange, sold 43 turbines in the first six months to June 30, compared to 127 a year earlier. Revenue from this year’s sales are expected to be $154m (£98m) compared to $357m (£229m) for the same period in 2009.
Clipper, which is due to release its half-year figures on September 30, expects a net loss of up to $30m. The company puts its loss of business down to the global economic crisis, which it says has impacted the availability of financing for wind projects.
Now there is talk that United Technologies Corp, the largest shareholder in Clipper, might ride to its rescue with a takeover deal. Clipper is in talks with UTC and has provided due diligence materials for a potential acquisition.
Clipper won a £8m grant from the UK government’s low carbon technology fund to build a factory in the north east. The factory is due to be finished by the end of the year.