A-Power Energy Generation Systems, Ltd. (NASDAQ: APWR), announced today that its wholly owned Chinese operating subsidiary, Liaoning GaoKe Energy Group (GaoKe), has received letters of intent for 380 2.5 MW wind turbines, an order that will utilize all of its anticipated plant capacity through 2009.
The first phase of the plant is scheduled to be completed in Q3 of this year.
Mr. Edward Meng, A-Power’s CFO commented, "As we have previously announced, we have recently acquired rights to both 2.5 MW turbines from Fuhrlander AG of Germany and 225 kW and 750 kW turbines from Norwin A/S of Denmark and we are planning to begin producing these in our new facility in Shenyang later this year. At this time we are very glad to report that we have already received a number of letters of intent that aggregate to 380 units to purchase the 2.5 MW turbines. In addition, we have received a number of LOI’s for Norwin’s 750 KW turbines. As previously stated, the sales price for the 2.5MW wind turbine is expected to be RMB 20 to 24 million ($2.7 to $3.2 million), while the 750kw turbine is expected to sell for RMB 3.4 to 3.7 million ($0.46 to $0.51 million). Both are expected to have gross margins of approximately 8 to 12%. In order to meet this demand as quickly as possible, we are making arrangements to import many of the subassemblies from suppliers around the world that presently supply Fuhrlander and Norwin. Over time we are confident that we will be able to identify second-source qualified suppliers for many of these subassemblies in China to further improve the gross margins."
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