A-Power Energy Generation Systems, Ltd. (Nasdaq: APWR), a leading provider of distributed power generation (DG) systems in China and a fast-growing manufacturer of wind turbines, announced it has signed a Letter of Intent (LOI) with Jiangsu Miracle Logistics System Engineering Co., Ltd. to source wind turbine components including hubs and main frames from Jiangsu Miracle’s subsidiaries.
Jiangsu Miracle is listed on the Shenzhen Stock Exchange (ticker: 002009) with a market cap of around $300 million, according to Google Finance. It started manufacturing wind turbine components in 2005.
Pursuant to the LOI, A-Power intends to use Jiangsu Miracle as a preferred supplier to source wind turbine components in instances when Jiangsu Miracle’s price and quality do not differ significantly from A-Power’s other suppliers. In addition, A-Power and Jiangsu Miracle intend to form a Joint Venture in Shenyang to manufacture components for both the 2.7-megawatts (MW) and the 750 kilowatts (KW) wind turbines. The initial prototypes of the components for the 750-KW wind turbines are expected to be finished by end of August 2009.
A-Power , through its China-based operating subsidiaries, is the largest provider of distributed power generation systems in China, focusing on energy-efficient and environmentally friendly projects of 25MW to 400MW.
In 2008, A-Power entered the wind energy market and has built China’s largest wind turbine manufacturing facility, located in Shenyang, Liaoning Province, with technologies licensed from German FUHRLANDER AG and Denmark-based Norwin, and a total annual production capacity of 1,125MW.
In March 2009, A-Power entered into an agreement to establish a Joint Venture partnership with GE Drivetrain Technologies to produce wind turbine gearboxes in Shenyang.
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