Pipestone officials said they still plan to build a $1.8 million apartment complex, despite learning Tuesday that a key customer of the town's Suzlon Rotor plant canceled an order for 150 wind turbines after experiencing cracking problems.
The apartment complex was to solve the pressing need for rental housing caused by Suzlon's rapid growth. The plant employs 500 workers, double from when it opened 19 months ago.
The Wall Street Journal reported Tuesday that Edison Mission Energy told the Securities and Exchange Commission that it canceled its second order for 150 turbines from Suzlon. The news comes months after Suzlon blades cracked at three Midwest wind farms last year. Suzlon has since redesigned the blades and had no new problems.
It is unclear what impact Edison will have to the town or the bustling plant that makes blades and nose cones for 2.1 megawatt wind turbines. Edison's order would have provided enough work for one quarter of a year at a plant that runs two shifts six days a week. Edison Mission's order was to be delivered next year.
Suzlon spokeswoman Michelle Montague in Portland declined to comment, saying all inquiries are handled out of India and Amsterdam. Those officials could not be reached Tuesday.
No news at the plant
Last month, officials in Pipestone told the Star Tribune that the factory had two years of back orders. That would indicate Edison's canceled order is not a fatal blow.
Workers contacted by the Star Tribune said managers didn't mention the contract cancellation Tuesday.