Ezion’s wholly-owned subsidiary, Teras Offshore (TOPL), has been awarded a contract worth US$83.4 million ($111.4 million) by Foxwell Energy Corp for the transportation and installation of 31 9.5MW offshore wind turbines.
Foxwell is an affiliate company of Shinfox Corp, which had won the tender from Taiwan Power Co to develop the Taiwanese state-run utility’s phase II offshore wind farm for a total contract size of US$2.11 billion.
Shinfox Corp is the renewable energy arm of Cheng Uei Precision Industry Co (Foxlink Group), led by chairman Gou Tai-Chiang.
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The turbines will be used for Phase II of the Taipower Offshore Wind Project. Ezion says the project is in the ordinary course of business of the group.
The contract will last for one year and is expected to commence on Sept 2024.
Under the terms of the contract, TOPL will set up a branch office in Taiwan within 90 days from the execution of the contract to support its performance. Failure to do so will constitute a material breach of the contract.
The price of the contract will be paid in New Taiwan Dollars (NTD) and each payment is subject to a 5% retention sum. The sum is payable within 15 working days after the relevant works have been inspected and accepted by the Taiwan Power Company.
Shares in Ezion last traded at 4.3 cents before the group called for a suspension on Mar 1, 2019.
