Category: Uncategorized
- Published: 29 November -0001
A-Power Completes the Construction of the Largest Wind Turbine Production Facility in China - Is on Track to Begin Its Production of Wind Turbines
A-Power Energy Generation Systems, Ltd. (NASDAQ: APWR) (\"A-Power\"), announced today that it has completed the construction of the first phase of its wind turbine production facility in Shenyang, China. The first phase is a 310,000 square foot production facility with an annual capacity to produce 300 2.5MW wind turbines and 420 750kW wind turbines.
Mr. Jinxiang Lu, A-Power’s Chairman and CEO, commented, “We are excited to announce the on-time completion of the first phase of our wind turbine production facility which we believe is the largest wind turbine production facility in China.This marks a significant event for A-Power as we anticipate that the wind business will quickly become a significant contributor to our revenue and earnings. We are presently in the process of finalizing agreements with component suppliers in both China and Europe. Once this is completed and exact delivery dates are established, we expect to turn our previously announced LOIs for the 2.5MW units into contracts and obtain additional orders for both our 2.5MW and 750kW wind turbines.
\"Based on ongoing discussions with potential customers, we expect that orders will quickly exceed the capacity of our new facility. As a result, we have already laid the foundation for phase 2 of our wind turbine production facility, which, when completed, will increase A-Power’s wind turbine production capacity by another 30%. It is estimated that construction on phase 2 will commence in Q4 2009 and will be completed in about 4 months at a cost of approximately US$10 million. After phase 2 is completed, A-Power will have the capacity to produce 400 2.5MW wind turbines and 550 750kW wind turbines each year.
\"Production of our wind turbines is expected to begin later this quarter and we expect it will become a significant revenue contributor beginning in 2009.”
About A-Power
A-Power Energy Generation Systems, Ltd., through its PRC operating subsidiary, Liaoning GaoKe Energy Group Co., Ltd., is the largest provider of distributed power generation systems in China and will enter into China’s wind energy market in 2008. The Company is also focused on developing and commercializing additional renewable energy technologies and has strategic relationships with both Tsinghua University and the China Sciences Academy in Guangzhou.
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, about A-Power and GaoKe. Forward-looking statements are statements that are not historical facts, including statements relating to expected wind turbine orders, production output and contributions to operating results. Such forward-looking statements, based upon the current beliefs and expectations of A-Power’s and GaoKe’s management, are subject to risks and uncertainties, which could cause actual results to differ from the forward-looking statements. The following factors, among others, could cause actual results to differ from those set forth in the forward-looking statements: business conditions in China; continued compliance with government regulations; legislation or regulatory environments, requirements or changes adversely affecting the businesses in which GaoKe is engaged; cessation or changes in government incentive programs; fluctuations in customer demand; management of rapid growth and transitions to new markets; intensity of competition from or introduction of new and superior products by other providers of energy generation technology; timing, approval and market acceptance of new product introductions; general economic conditions; geopolitical events and regulatory changes, as well as other relevant risks detailed in A-Power’s filings with the Securities and Exchange Commission. The information set forth herein should be read in light of such risks. A-Power does not assume any obligation to update the information contained in this press release.
Union Investor Relations
Ian Shanno, 310-928-3780