SOURCE: Composite Technology Corporation

June 11, 2009 08:05 ET

Composite Technology Announces New Market Penetration

ACCC™ Conductor to Be Used on Energized Reconductor Project in South Africa

IRVINE, CA--(Marketwire - June 11, 2009) - Composite Technology Corporation (CTC) (OTCBB: CPTC) is pleased to announce a new order for its subsidiary CTC Cable Corporation. The order, issued by Allteck Line Contractors, a Quanta Services company (NYSE: PWR), is comprised of ACCC™ conductor and associated hardware to be used for reconductoring four 88kV transmission lines for City Power Johannesburg in South Africa. The reconductoring project will help to significantly improve the capacity and reliability of the transmission grid serving the Johannesburg area. This is the first use of ACCC™ conductor in South Africa and demonstrates penetration of a new geographic market for CTC Cable. ACCC™ conductor is the most broadly accepted composite core conductor technology in the industry with over 130 installations with 5,000 miles in service to date including thousands of miles of transmission lines in China, Mexico, South America, Europe and the US.

Demand growth in Johannesburg and the region has led to severe strain on the electrical grid which has driven the need to increase capacity. Quanta Services teamed with Edison Jehamo Power to reconductor approximately 70 kilometers of the grid without interrupting electrical service to the users. Quanta has a patented technique to safely replace the conductor while it is energized, meaning no interruption of electrical service or rerouting of the electrical load is required. Allteck will provide the technical expertise needed for the energized reconductoring project and it will be supported by other Quanta teams in Kansas City and Houston. Edison Jehamo Power will provide local manpower and equipment.

CTC Cable's ACCC™ conductor was chosen for this unique application because of its superior sag profile, high capacity capabilities and its unmatched transmission efficiency. Quanta already has experience with ACCC™ conductor, having installed it previously in the United States. CTC Cable will provide over 210 kilometers of ACCC™ Lisbon conductor to satisfy the 70 kilometer circuit length.

"The penetration of the South African market is another important step in spreading ACCC™ technology to electrical grids around the world. We are especially excited to serve Quanta Services on this order. Quanta is highly respected and the joining of their techniques with our ACCC™ conductor provides a valuable tool for electrical grids to increase capacity without the delays and costs of an extended power outage. The combination of our technologies creates a fast and cost-effective way to tackle the growing problem of electrical congestion," stated Marv Sepe, COO of CTC and President of CTC Cable.

About Quanta Services:

Quanta Services is a leading specialized contracting services company, delivering infrastructure network solutions for the electric power, natural gas, telecommunications and cable television industries. The company's comprehensive services include designing, installing, repairing and maintaining network infrastructure nationwide. With operations throughout North America, Quanta has the manpower, resources and expertise to complete projects that are local, regional, national or international in scope.

About CTC:

Composite Technology Corporation, based in Irvine, California, USA, develops, manufactures and sells innovative high performance electrical transmission and renewable energy generation products through its subsidiaries:

CTC Cable Corporation produces composite rod for use in its patented high efficiency ACCC* conductors, used in electrical transmission grids. ACCC™ conductors have less line loss compared to similar diameter conventional conductors and therefore enable power generators to reduce the amount of generation while still delivering the same power to customers. Our conductors have demonstrated significant savings in upgrade capital costs as well as operating expenses when substituted in grid systems. ACCC™ conductors enable grid operators to reduce blackouts and brownouts by providing reserve electrical capacity, since they can be operated at higher temperatures without significant thermal line sag. ACCC™ conductors are an economical solution for reconductoring power lines, constructing new lines and crossing large spans. ACCC™ core is produced by CTC Cable and delivered to licensed qualified conductor manufacturers worldwide for ACCC™ conductor production and resale into local markets.

DeWind Inc. designs, produces, and sells the DeWind series of wind energy turbines, including the new 2 megawatt (MW) D8.2 model in both 60Hz and 50Hz, the 2MW D8 model in 50Hz, and the 1.25MW D6 model in 50Hz. The D8.2 turbine uses a WinDrive® hydrodynamic torque converter, by Voith AG, in combination with a synchronous high voltage generator that is synchronized directly to the grid without the use of power conversion electronics. DeWind D8.2 turbines are assembled at TECO Westinghouse Motor Co., in Texas.

*ACCC is a trademark of CTC Cable Corporation

For further information visit our website: Investor Relations Contact: James Carswell, +1-949-428-8500.

This press release may contain forward-looking statements, as defined in the Securities Reform Act of 1995 (the "Reform Act"). The safe harbor for forward-looking statements provided to companies by the Reform Act does not apply to Composite Technology Corporation (the "Company"). However, actual events or results may differ from the Company's expectations on a negative or positive basis and are subject to a number of known and unknown risks and uncertainties including, but not limited to, new or revised governmental laws and regulations (or the lack thereof) that affect wind energy, competition with larger companies, development of and demand for a new technology, risks associated with a startup company, the ability of the company to convert quotations and framework agreements into firm orders, our customers' fulfillment of payment obligations under the respective supply agreement, our ability to deliver reliable turbines on a timely basis, general economic conditions, the availability of funds for capital expenditure and financing in general by us and our customers, availability of timely financing, cash flow, securing sufficient quantities of essential raw materials, timely delivery by suppliers, ability to produce the turbines and acquire their components, ability to maintain quality control, collection-related and currency risks from international transactions, the successful outcome of joint venture negotiations, or the Company's ability to manage growth. Other risk factors attributable to the Company's business may affect the actual results achieved by the Company, including those that are found in the Company's Annual Report filed with the SEC on Form 10-K/A for fiscal year ended September 30, 2008 and subsequent Quarterly Reports on Form 10-Q and subsequent Current Reports filed on Form 8-K that will be included with or prior to the filing of the Company's next Quarterly or Annual Report.

Contact Information

  • Investor Relations Contact:
    James Carswell