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TPI Composites (TPIC)

Participants
Christian Edin Senior Director, Investor Relations
William Siwek President & Chief Executive Officer
Bryan Schumaker Chief Financial Officer
Laura Sanchez Morgan Stanley
Donovan Schafer ROTH Capital Partners
Eric Stine Craig-Hallum Capital Group
Stephen Gengaro Stifel
Tom Curran Seaport Research Partners
Pavel Molchanov Raymond James
Call transcript
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Operator

Good afternoon and welcome to TPI Composites Second Quarter 2021 Earnings Conference Call. Today's call is being recorded and we have allocated 1 hour for prepared remarks and Q&A. At this time, I'd like to turn the conference over to Christian Edin, Investor Relations for TPI Composites. Thank you.

You may begin.

Christian Edin

Operator. you, Thank welcome earnings to TPI second Composites' I'd everyone XXXX call. quarter like to

be during assumptions filings today's to with comments found our references and forward-looking and the includes We on We to also forward-looking any during discussed latest Each any materially making Commission. any will call this on statements in undertake Today's to statements forward-looking duty because and tpicomposites.com. be Securities in Actual or could the if non-GAAP which of made of from uncertainties. conference factors our current website, do can our this financial release Exchange assumptions, are not incorrect and presentation earnings statements. update subject key news and reports which our risks measures. of results differ are expectations based call other

information refer measures. Composites' the presentation and to TPI definitional President information to should accompanying the Bill call slides and GAAP You historical to today's the me in Siwek, turn for that, measures let comparable of contained reconciliations over the CEO. non-GAAP With financial

William Siwek

Christian, afternoon, and you Thank joining call. Thanks, everyone. our for good

Magna of a term We Systems, Ford remain hired also The Bryan Slide we solid We Bryan of review In net the engineering ensuring over any for X.X% announced open production locations. with production blades to Development continue while Lavine relationship and of and focused on $XXX.X Nordex as second Chief lines the addition financial Program extension contract impacts our we update XXXX our am I Officer future contract. X in deal under blades to then of the over XX nearly million, we results with X. Vice and revenue that today our Mexico. at President, over of market. X quarter operating a automotive President, adjusted lines the are the a Matamoros, production and approximately over safely, XXXX. turn in July Proterra are added an in took In Jerry to continued will call business of line. for of of up Product initial million the global and years. with Service of of International global extension our electric and delivered senior joined expansion QX increase Automotive will our of of which COVID-XX review wind then for $XX.X for $XX.X detail We experience years. supply on and Company mitigate of We continuing energy resurgences Transportation. wind we DURA X Nordex Tier and and served Q&A. industry. served in an We composite their roles bus produced the of The for million Jerry XX bus Vice prepared of million virus the Motor Proterra in to in bodies on global addition Nordex. technical Please suppliers our $XXX wind the our through being executed with I'll President XXXX CFO. QX net contract X-year potential of XXXX, a manufacturers had then XX.X% businesses, briefly and brings to second of Jerry by Executive EBITDA of chain of in Christian, results working years an increase or quarter sales, Schumaker, major operations give Transportation the sales as and

continue We to in enable work and associates customers' our order to safely procedures our operating to demand. have continue will and meet to adapt our

quick a you give well now I'll X, market our update global of as as operations Slide update. to Turning

the During experience issues and not significant facilities our we continued from normal production levels, of we to did stoppages. all material any production at operate COVID, second quarter, including any

it to evaluate is for optimized to global ensure the our continue market. We and customers our footprint

to reduce costs, to our our are to streamline our operations Chinese We activities consolidate operations right-size planning customers. serve and profitably

Yangzhou add consolidate and offshore we serve is our our the have efficiently This both and prime operations Our location onshore place blades. facility customers. lines the world-class, handle to is and to ability more and ideal

agreements As we end discussed July press XXXX. of the with SGRE our at supply from XX, expire in release our

financial Due end we will to currently blades XXXX. expect of wind So X margins in the exploration our these for current performance lines, are to we accretive in on to Mexico. manufacturing planning the lines Juarez, SGRE production be

more We U.S. and Mexico are in believe or customers actively we into be over will one continue the backfill options supply one best these with production time, for future. low-cost the as these operations of lines blade seeking to to the

and are therefore site. this As in options regarding our customer for are our Iowa, we evaluating production discussions still future for with

exploring also are onshore, offshore geographies combined. new customers We our with and for

we As on market that expected I'll in larger point. so we move quickly for can expected be global And minute, be the to preparing is and inflection over wind ready again and now discussed significantly time. this have touch a we are

second China. On project offshore business, our we the in of completed quarter, service the side the during first

located very training center associates and OEMs has as from been work new a add successful planning our open our will as securing training European quarter. to owners. our Europe, Spain New to globally, the during in new facilitate business are growth growth accelerate to To we development in our in This well in team Mexico. fourth continue center We Americas asset complement

developed while production adds over other business to offerings enable the refine Jerry on vehicle structures body growth commercial we accelerate his we has we electric refocus the cabin level. need a passenger for he continuing EV collaboration along and with delivering deep experience, leadership business. believe XX-year His front, manufacturer, addition The will next to our and depth with in along operations are OEMs automotive the of and take transportation multiple our contacts career, to parts the that automotive our On to components. transportation relationships this Lavine technical with the us and

press we in supply been As has our release during chain, supply other ago, like challenged a chain, couple shared weeks virtually COVID. of every our

have We as resin and raw carbon to material logistics relating mainly as seen fiber costs, increased well increased costs.

material of balance XXXX. While market pass impact able margins. our to XXX% that Expectations and to we we on that of start and the stabilized indicator that pricing are market consecutive slow increases to And months has are drove resin increases of a price the cost downward liquid we the epoxy not QX we this had are to on balance. see highs. in cases, expect to record epoxy some resin was portion of and to that year of through the begin is to our after X majority, pass by the able of will returns continue to gradual improving from a the that June impact of of the early as end this An a on as customers, trend July,

supply work costs identifying along our chain with is suppliers, as the solutions existing of and minimize logistics suppliers possible. soon alternative increased with always, As alternative as hard impact to at team

in market. that will extends the to the Service the Since for largest wind through deal help published last and safe the clean creating harbor in-service extends authority Internal In placed XXXX began tackle our guidance buses total, years and the XXXX Turning facilities a to call, history, in and X construction to climate the investment the in once-in-a-generation the a and vehicle Revenue taxpayers the a XXst requirements country, electrical for on facilities lenient energy meet includes in thousands details to Biden investment of in obtain transmission years infrastructure. five that to billion provides of U.S. grid. began and to in agreement change new infrastructure tax harbor construction safe grid in more in-service school announced an the credit. infrastructure investment across making standards a build bipartisan placed clean production group electric new and XXXX President the that century transit by electrifying federal America's $XXX that U.S. deployment

energy in The elements or through package larger be and not for installed a gigawatts times spending this largest and does will approximately reach of to or the with is the reconciliation a generator extension XX more over compared map industry energy an tax sector manufacturing addressed battery supply to the tax International credit include clean is single chain by global to to or generation of According up XXXX, transmission energy those of Energy XXXX. This installations year. total new federal in Agency than wind expected clean net in XXXX. credits gigawatts current XX% the or production any Although for TPI. for storage, zero increase huge making opportunity conservation many deal road any the a be believe or X,XXX has energy later electricity or mandate, a emissions released by wind IEA, XXX investment

On record is the opportunity the XXXX. critical will to great that set XXXX, in next IEA in industry. or more of wind than installed the the a both path wind by be zero, gigawatts X XXX about expects for times The decade annually and TPI

the decreased We that uncertainty U.S. general and policy customers policy satisfy during higher the uncertainties safe resolved. short-term timelines a XXXX, due significant, to causing in you costs therefore, we in the better believe the PTC purchasing global once and to remainder will and Longer-term, developers couple around or believe combat to us update our raw we able are material as as to project ago, And reevaluate the the PTC blades is on believe and renewable wind targets optimism necessity anticipation and regulatory developers fourth the potential will long-term we turbines weeks requirements. As increases. not from shared this the are we Therefore, demand our change. levels in build legislation future for of we being electrify are PTC the strategy is develop at wind to we quarter. wind expect for of to particular strengthen extend opportunity We cost with climate extensions a clarity our given blades energy long-term and basis lower the around projects of and significantly decarbonize once for as is harbor place. to continued current expected well in believe

remain include on of safety of very Bryan, by diversity over and safety, it associates, operating our and focused neutral XXXX. turn board, driving ESG we inclusive goals, the increasing I become more on and our primary and health while our carbon imperatives to a associates to executing the company, becoming Before which

in scores across the We are improvements pleased our improvements to efforts, raters. the ESG from including sustainability our see ESG year-over-year major

the at authorities With facilities and working our associates including to all local call at up to the Finally, drives been with vaccinated, of our turn facilities become me we over directly clinics. setting let local Bryan. have that, vaccination help

Bryan Schumaker

Thanks, will to Bill. Please basis turn to today the Slide period be on XXXX. XX. same compared made comparisons in year-over-year All a

of blades mix an ASP India $XX.X XXXX, was the the primarily by of transition for net to increased million to and number the in to Net quarter longer and increase facility ended by $XXX.X increased and was X% modular transition For million. QX by sales million our blades to wind ramp $XXX.X XX.X% This increase an to by due and in June or continue as approximately we in Startup of $XXX,XXX, sales quarter million, XX% to the produced second XX.X% XX, XXXX of blades Mexico. decreased increase blades costs lines wind produced. $X.X the year-over-year. year-over-year selling wind million. driven a $XX average price

points Our of general of percentage a sales net X.X% G&A for sales. to and expenses decreased net quarter decreased the $X.X by million to million, and basis as administrative XX $X.X

XX% liability Foreign denominated million lira. liability primarily basis on QX continues in naturally currency a exposure QX foreign net euros. to as cash our of XXXX million be loss to euro-denominated in due revenue hedged was exposure QX the The contracts. This was $X.X to loss the of flow due increase Turkish euro Approximately compared in against $X.X to XXXX. revenue XXXX, in currency was

as for the year million compared prior provision $XX.X tax quarter period. for the was Our income to million $XX.X

the as cash our forecasting a are million to in $XX.X $XX.X million $XX to the be for of million compared quarter for XXXX. million We same Net loss to tax liability for approximately net loss $XX due described. the was per reasons to decrease same net This was primarily Net for loss XXXX. the in $X.XX loss compared of in to XXXX. share period previously per the quarter $X.XX period share was

$X.X This million with installed compares utilization adjusted $XX.X same adjusted of rate to period in XX% net sales XXXX. X.X% XX% end. for and Our QX EBITDA EBITDA or the million was or of for a sales quarter utilization net at the X.X% of lines of in of

cash $XXX.X leverage of XX. Slide X debt our times cash the equivalents, to We well Moving target. quarter and and net million below of ended ratio million $XXX with

we expenditures that the QX, and our For will that continue achieve us capital safety help to long-term on goals. of focus associates health prioritize our and

XX. Slide to Turning

our well billion $X.XX in EBITDA full Nordex of reflects offset Adjusted year XXXX, and guidance production million relating to approximately customers July as resin beyond For blades initial revenue logistic $XX $X.X XXXX. million continue additional with second, our we the million our expectations. at wind $XX decrease associated as impacted demand levels first, X during raw to we began costs, primarily X to remainder increased items: EBITDA mainly This our the and approximately expect that by elevated from due remain between billion. and for carbon the our which $XX million, our and is of by the XXXX; demand customer's fiber between of $XX in be the adjusted costs, to decreased material lines and

million QX the due charges capacity Nordex to between EBITDA XX%. updated We guidance. dedicated be reflects $XX $XX of forecasted $XXX CapEx with in is XXXX, XXXX. be then our to approximately of manufacturing due earlier. million wind to of to million alignment $XX facility footprint to Non-blade X are adjusted to $XX start-up on in will increase non-cash. million. sets the over We're the $XX million. and $XX and full costs adjusted These for to restructuring the and XX Matamoros, between XX% ASP year with approximately incur to X,XXX We between XX% and costs With your total back the million $XXX forecasting EBITDA mentioned of restructuring forecasted consider to associated and This of blade incurred questions. will sales of in and raw increase ASP a wrap XX% This to of up, Nordex $XXX,XXX between in of be of material I $XX lines of to a million Startup to Mexico. Bill? the XXXX additional lines, global $XXX,XXX. million customers. that, million utilization charges take it forecasting and our $XX million. increase to passed in restructuring charges Bill, actions, Bill turn between we'll

William Siwek

Thanks, Bryan.

associates Slide The and and health our number to priority. XX. of families their our Turning one safety remain

working We the necessary continue to the on take our the of our steps and facilities, safety get COVID-XX ensure safe vaccines. front access to to while associates our associates' of in conditions working to all

of The service aggressively continue validates space. the in and pipeline, couple has and We opportunities in service activity with it picked work have and investment up we are progress to the quarters. our and over of we new our wind level this significant pleased global commitment our last how growing made team

to goals. continue the remain through space flexibility on on our toward our We to the transportation security long-term acceleration to environment profitability Lavine, financial drive and our execute provide and on strategy revenue Jerry will our With liquidity managing and we of we transition. as and drive the build energy current the in of capitalize the focused addition momentum

strength technologies of We to and opportunities and breadth support explore the to our add build to current growth, expanding multiple to capabilities our and continue out business.

to mission decarbonize remains electrify and unchanged. overall Our

while our supply costs global strong balance while for maintaining efficiencies footprint, scale sheet. maintain to continue our will provides down continue or We to optimize to drive a leverage operating the chain using global and all

and future the at remain here our excited our vehicle industry the TPI. our customers, with relationship the Given position electric broader for in market we tailwinds, and wind

dedication Thank Finally, open TPI for to And of thank please associates challenging these with commitment today. all our again time for and their I during your want the times. you questions. for line operator, that,

Operator

We session. ahead. go Our Stanley. question will Instructions] question-and-answer with Laura begin Please [Operator from now Morgan Sanchez the comes first today

Laura Sanchez

Can you everyone. Hi, good me afternoon, okay? hear

William Siwek

fine, Laura. Thanks. you Hear just

Bryan Schumaker

Hi, Laura.

Laura Sanchez

you Perfect. time. Hi. Thank your for

XXXX that changed around in has Could what impacting understand uncertainty had but now please comments market be previously XXXX. be I that flat any dynamics? U.S. the to very is XXXX you the there the on for volumes very extension believe there would I looking market to and the that was wind you mentioned expect in regards PTC XXXX, strong you in comment So that's helpful. so in

William Siwek

thanks Laura, Yeah, for the question.

those I customers, first That discussions about XXXX. think from quarter comments customers. us not pretty and we as take relates it changed. early our comment on market that I looked on and with flat, being to did volumes the good our for comments customers' has mostly

long-term the implemented been bulk then, in talked is flat big whether significant the think we've or clarified, with for around XXXX uncertainty that the the XXXX, potentially year. changes to rest in I of we or once EU the U.S. pretty the relatively about And has what in XXXX be volumes. as of a of and some some which market think see it's policy, compared how consistent then I the was market being

Laura Sanchez

Understood. And be would XXXX? just XXXX, to clarify, right, that flat not versus

William Siwek

I Yeah, sorry, misspoke. I'm correct. That's

Laura Sanchez

us then, Nordex Siemens the in away manufacturing have of that I for Can end that year X with being know what's And the prior moving a lines, you causing lines you help XX Gamesa little bit dedicated lines lines guidance. understand on with you pieces? added, I the okay. Okay, see have and going XX the increase? the so X versus the now

William Siwek

is of technically of a it's the here. so XX end It little a at Yeah, bit technicality period. the

of because the the and at end year, that then, the XX/XX on expire year. would be end And the so, the expire, contracts that of at

year. are of that at contracts of this the So there are expiring a number end

We it this yet, number will So will XX. than lines have don't XX as fewer be going point a XXXX, than but have less final contract. we under into of

Laura Sanchez

Understood. question, last going or if in able is Okay. for purely that Wondering a The by the to given new the with lines supply this up price constraints. you may. average if chain And Nordex year. is being of selling I raise driven prices combination

Bryan Schumaker

causing so material contracts larger portion of And a driver that is yeah, is lines, it our raw with primary up, the the just the that's Nordex material. piece the of operate. ASP costs then, is No, how on the going raw in input the based increase

Laura Sanchez

you That's Got it. end. in much. so my Thank all

Bryan Schumaker

Thank you.

William Siwek

Thanks, Laura.

Operator

Partners. Capital come with Our will ahead. go next from question ROTH Shen Philip Please

Donovan Schafer

Donovan tend and reconciliation is to I This come to you potential public seeing that the infrastructure year, is railroads. occurred infrastructure, think first we the guys. of, are direct bill of guys But bill spend. be would the roads Hi, at Phil. talk actually also the on biggest about we with for and My when think and me could source of transportation. it question anything a I end things about - that huge buses it's like think, part bridges a It's the

you actually governments so, flagged money be And quarter? flagged are the benefits for municipalities could it was any aware anything second to of buses or purchase just and or that or

William Siwek

of that transit Yeah. school bipartisan and in and deal, deal. buses that's amount There was a is aimed at the pretty significant in it outlined the

there's biggest there of is wind and clearly. And from amount standpoint customers, for But a for part the fair infrastructure for the for news enhancement So us transmission. - on anywhere $XX depending period a some bill upwards billion of has great That's is score over billion time. that. been from allocated for you our grid or that $XX how of - it, to a

takes to excited generated or from where to we're So transmission it's take to get because are transmission here, that people the infrastructure key electrons need that. fact where we about is again, a the does and front pretty seat a -

Donovan Schafer

great. That's Absolutely.

million contracts you In Nordex split the So for Proterra and you incremental deck, X between the a and us over Can you're on frame announce. another gave just Proterra $XXX that give of question for sense time contemplating? the you what Nordex. between the the and

William Siwek

a deal. Nordex you deal can't but Proterra the give - split is we deal X-year between a The direct X-year X-year No, X, is the deal a extension. the

Donovan Schafer

I that shipping And we tracking Right. their who and occurs will to if I on X logistics. of that pay them, customers you can. And demand least but and to more, in the the at all just follow guys, question, the what's ship impact last ones, level terms so your forth. that going it on know are me of and blade companies then through just We're so for

are trying go freight generally looking and costs lag we're moving is at there generally follow meaningfully good will with something a other at where bottlenecks? container could trends, with be for cost and if Or indexes? those shipping indexes such, that proxy a moving freight and looking So Or a shipment different this blades to blade?

William Siwek

Yeah. standpoint. Very different from a blade

as are obviously there there's well specialized rail and So specialized truck fixtures. fixtures as then specialized ships,

hard to a So it's really compare container. to it

pricing itself into parts overall we facilities. as as with and However, mean our by passed on the to price cost That different a of right, well, be. from raw that that raw I the said, world gets impacted are to we of the materials container like material added manufacturing product, would portion our bring customer just the of

So, mean, is we're it relates smaller is at to you of increase but opposed logistics seeing year, it this overall that materials blade. piece yeah, overall as to the the if look I raw as meaningful a impact,

Donovan Schafer

on. you. Thank Thank pass you. Great. I'll Okay. it

William Siwek

Yeah.

Operator

with Please Craig-Hallum. Our question Stine Eric comes ahead. go from next

Eric Stine

the hope materials, up you the the that setup pain-gain anything. when talk Maybe But you've us you've they remind maybe how late, I got maybe don't when about. Hi, about raw reset I current contracts so on set to of in everyone. are know Jumped based just force shared I context. And the - talked repeat kind on then or that price. you can just on situation

William Siwek

Yeah.

that so that to that XXX% So customers responsible price time. real the goes one we of happens just our customer have raw is material XXX% - increases, for of

price up - it is up. go costs if XX%-XX%. will, of you average pricing other As input our as or customers, material goes XX% but our - up, varies, goes With raw our

our Most XX% contracts quarterly. of would cost to customer. We get generally. that of of today would XX% that absorb passed So reset our

and could get passed. inter-quarter they price then would increases, you have So

we reset at set instance, In end of price one a the quarter. beginning of the would the at year. You

in So XXX% we increase. to happen - we raw absorb happen material case, that of the

across that's the board. kind of So

of it, some case, we quarterly. of on it's So that's an and in XX%-XX% other that XXX% our And of absorbs at customer a it, basis. - XXX% reset one annual absorb

Eric Stine

mean such has situation. it are been unquote not seems I the but when you've mean, normal, things place this an I this guess, normal. extreme obviously like got model quote in I And, is works

William Siwek

I a down, Well, guess, reduction like we suggest both in are If situations, benefit also where couple in prices price. we right? situation in now, going with works we're would that that I and it benefits pain. commodity in going share from prices right are customer up of If our commodities a

of us - it. better taking So is it's taking XXX% a of than XX% it

we our do - the nature of the that's downside. limiting reducing and our upside kind by relationship the So we by our limit And contract with of have customers.

Eric Stine

Yeah. that's fair. No,

Okay. me. last from one Maybe

in those, some And those. China, Just traction has OEMs kind those then but that any potentially question fill some of they mean filling in to any know a interest all, traction been first is local traction but of I any the might just ongoing with sell working launch China. well, of I some secondly, lines? in or on this possibility time, - the there for of

William Siwek

if lines, the Chinese still from bit tougher actively Yeah. you a with little a OEMs It's those I cost standpoint. will. working we're mean,

other OEMs, report in facility, on with continue; as working today. so our in western And those to We nothing but nothing to report combinations different our still we're continuing have scenarios the had of with work different with with and to conversations it. specific - them them, then many

Eric Stine

Okay. Thank you.

William Siwek

you. Thank

Operator

ahead. Our today Stephen next [Operator come from go Please Stifel. with will question Gengaro Instructions]

Stephen Gengaro

afternoon, Good things X me. everybody. Thanks. from

you XXXX. in referenced The first when the for expectations being market your

when gone you this should you And given margins market position, curious, market can of your you think that, year? about a of maybe year, expand business, flattish on alongside next mimic your in the your what's contracts, Just market? kind

William Siwek

a It's question. Yeah. good

I response to lines in under contract. about earlier Laura's think question

next under fewer So we'll year. have contract lines

year. better have to next expect We utilization

those a making been expect our relatively with hard we margins. more though we generally on do flat reducing working expect better And last years variable the utilization. - comes we've really cost reducing even Along So year, better few over utilization better overheads, than fixed. lines,

our combination better and so continuing And cost begin a to year. drive to lean organization dividends pay out should and of utilization next

Stephen Gengaro

And similar. Great. Is sequentially. blade on - kind It a your the timing see trying Thank you that's non-wind thing because a kind year, speak looks of about the on the was sharp just then a there how can in was seasonal but had to I blade the pretty to thing quickly guidance, it like throughout transportation of just because, full-year just And sales rise the - trend quarter or you I last side? you. side, year. non-wind there think how progresses second

Bryan Schumaker

Yeah.

in there. the side and some As revenue the field made you think side, transportation about non-wind blade it's sales, other up of, the one, service

all mean, especially services to do you seasonality field of contributing, with I we as see continue some so are that. you'll some of ramp, kind of those So have to

numbers right going now. So those all that's into

Stephen Gengaro

blade trend there, of higher that larger and materials length, you the and trend over changes of being maybe did et the selling a in And just of given talk continue Thanks. to Okay. one one. cetera, underlying raw But And correct? sort by with still years, piece next wind prices should that. blade big blade just couple blades, average driven about final design the

Bryan Schumaker

Yeah.

William Siwek

more Yeah. and Longer content also the of then the importantly, blades, heavier right, blades. blades,

ASP So the from as in go as carbon glass, increase well. an pure see more to you'll blades

Stephen Gengaro

you, gentlemen. Thank Great.

William Siwek

you. thank Yeah,

Bryan Schumaker

you. Thank

Operator

Please from Seaport come with question Partners. ahead. will Curran Research next Our Tom go

Tom Curran

afternoon. Good

Bryan Schumaker

How you Hey, Tom. are doing?

William Siwek

Tom. Hey,

Tom Curran

at flexible And of comes chain, then you still are what Where now supply update do Bryan, to give to aspire when more achieved? do to you've comes it an the when initiative? could you it what a measures that you've been create us on localization? to in taking terms you resilient

William Siwek

that to very take certainly that you can or initiative very we we and give It of And It's period. a will as We're the important I mean, versus X a to for the way of regionalization localized not. work whole percentage that's during continuing a localization number us specific as continue - be for Bill. price. you had is continues more But COVID, number I'll local number one. us Tom, key Hey, prior on reasons. benefited more supply suppliers can't commodities. this I well of as a tell for I that through the to to us having reasons. security going

continue be say, to number But to at So to it on that. we're that team. a this specific to going on that I give priority continues point. you can't focus one our a for suffice

Tom Curran

it OEM that then, to customer And just by a you most based X point, we'll expect new SGRE, to indications, getting conversations and be Bill. your relinquished or in lines on one? existing be likely when the absorbed by would this comes those an current Thanks, fair. That's at Juarez

William Siwek

I would an existing probably one. say

we've that in of the don't China, I top coming OEM see Given a outside Chinese X got there.

I So of think one customers. likely our it's that it's existing more

Tom Curran

Right.

want notable or that current us and update and looking on see for the there one is and mix repair just OEMs changes service, owners what operators, then farm then, there wind horizon to mix? could any are your field not Just within me, U.S. move any turbine services, customer if you inspection from occurring whether to the between potentially one last new on was into And and

William Siwek

XX-XX, maybe Mexico, might region, OEMs. frankly. some primarily to to continue I and the would owner of it depends owner. asset owner. In we a asset extent. U.S., We're OEM more discussions, XX-XX, be quite it's on In asset probably the say versus it's China, lot having, have

it but by it's just OEM. So region, still it varies predominantly

Tom Curran

for questions. taking you Great. my Thank

William Siwek

You you. bet. Thank

Bryan Schumaker

Thanks.

Operator

go from [Operator next will Please Instructions] question Our Molchanov with Raymond ahead. Pavel today come James.

Pavel Molchanov

jumped Thanks for late. on taking I question. the

in give I with in the on days operations you the in context already, So can last covered status specifically what's happened if personnel? India, the an COVID this of of update XXX and there or apologize so, the you but your

William Siwek

Yeah, portion very actually, it we slightly well, more from the managed managed standpoint, It impact well. now because but are a suppliers, production availability, our raw did through us that there vaccinated. from significant material Thanks of Pavel. again, of for so very associates question. A

impact us at any in did point. And not it material this so, way

Pavel Molchanov

where there is are footprint, on agreement regulatory countries, Good capacity due union? all And there to with either operations to constraint the across a manufacturing your hear. basis X or any global

William Siwek

Because of COVID?

Pavel Molchanov

the distancing. context In yes. of, yes, Yes,

William Siwek

tell And one Yeah, recent, Matamoros, shut And Turkey in It's of plants is China, we'll were shutdown in week extra and There's constraints city. voluntary and no China for call on we're again, XXX reasons. of like we because in an a outbreak. a you know, no union in very China be likely will unionized what constraints. there. as of number I you our this in in would Yangzhou cases an down there

the for their U.S. So tend the shut relatively pretty down we're there elsewhere, but in used tolerance. with and quickly to to they zero things small numbers

quarter So down I volume for will the overall our would expect but the impact for not we'll be or an week unplanned, for shut additional year.

Pavel Molchanov

Perfect. hear very much. Good you to it. Thank

William Siwek

Thank You you. bet.

Operator

our gentlemen, session. will for question-and-answer turn and over to conclude this back I'd Ladies like the management to any remarks. conference closing

William Siwek

your and look thanks, you. interest we discussion. for our in everybody, TPI. And you Thank Thank next to forward

Operator

attending you for Thank conference presentation. now has today's The concluded.

disconnect. now may You