A-Power Energy Generation Systems, Ltd. (NASDAQ:APWR), 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 2.5-megawatt (MW) 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.
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