A-Power Energy Generation Systems, Ltd. (NASDAQ:APWR), announced today that it intends to build a new wind-turbine production facility in China with the capacity to produce approximately 800 megawatts (MW) of wind turbines each year.
The company has entered into a Memorandum of Understanding with the Bayan Nur city government to construct the 290,000 square foot wind facility in its Inner Mongolia Autonomous Region.
A-Power intends to produce its 2.5MW and 750kW wind turbines in this facility. Based on market demand and the wind conditions in this region, A-Power also anticipates future production of 1.5MW wind turbines in this facility and is in discussions to license or acquire 1.5-MW wind turbine technology.
As part of the agreement, the Bayan Nur city government will also provide A-Power with tax breaks and coordinate all of the sales efforts for A-Power’s wind turbines with wind farms in Bayan Nur and surrounding areas.
Bayan Nur is located in one of the three premium wind belts in China. The Peoples Republic of China central government has recently approved wind farms with a potential 2,100MW of output in Bayan Nur alone.
Mr. Jinxiang Lu, A-Power’s Chairman and CEO, said, "The new facility will be similar in size to the first phase of our facility recently completed in Shenyang and its strategic location will be advantageous to serve this particular part of Inner Mongolia’s wind belt. We plan to begin construction on this facility in October 2008 and it is expected to be completed in July 2009 at a cost of approximately $20 million.
"The 800MW annual wind turbine production capacity at this new Inner Mongolia facility combined with over 1,000MW from the first phase of our Shenyang production facility will give A-Power an annual wind turbine production capacity of over 1,800MW by the end of 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 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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