EXECUTIVE VIEW-Vestas' Brazil order cancelled due to funding rules
COPENHAGEN Oct 3 (Reuters) - Danish wind turbine maker Vestas Wind Systems announced on Friday that delivery of a 254 MW project to the customer CPFL Renováveis in Brazil has been cancelled due to changes in local legislation.
The company said it does not expect the cancellation to impact its outlook for 2014.
Shares in Vestas traded 1.7 percent lower at 0814 GMT, underperforming a 0.4 percent rise in the Danish benchmark index.
Below are comment made by Vestas' head of external communications Michael Zarin.
ON WHY THE ORDER WAS CANCELLED
"The changes in legislation that we are referring to have to do with the exact terms and conditions for delivery under the Brazilian FINAME code, which was changed some time ago. The code has to do with the local financing of projects from the Brazilian national development bank."
"Because the negotiations with our customer, CPFL, are ongoing regarding the final terms an conditions of the termination, we are not going to comment further on the exact nature of the contractual arrangements."
"I do want to emphasize that while unfortunate, it is of course an amicable agreement between Vestas and CPFL. We tried to come to an agreement and we weren't able to do so, and on a friendly basis we decided to terminate the contract." Continuación...