Chinese wind turbine maker A-Power Energy Generation Systems (Nasdaq: APWR) intends to add thin-film solar technolgy to its portfolio through the acquisition of Japan’s EVATECH Co., Ltd.
A-Power signed a memorandum of understanding to acquire 100% of EVATECH Co., which designs and manufactures industrial equipment for LCDs (liquid crystal displays) and PDPs (plasma display panels).
The all-cash transaction is initially valued at $50 million and is expected to be primarily funded through a combination of government subsidies and loans. Government subsidies are expected to amount to 40% to 45% of the total purchase price.
”We are truly excited about the potential of adding EVATECH’s advanced thin-film solar technology to our reservoir of expertise in the design, manufacturing and installation of clean energy systems,” said Mr. Jinxiang Lu, A-Power’s Chairman and CEO.
Mr. Lu continued, ”EVATECH has more than 20 years of experience in developing thin-film products, and since 2006, it has begun producing production lines for thin-film PV panels, with dedicated R&D centers in Japan."
EVATECH is currently undergoing corporate and debt restructuring in the Japanese courts. A-Power said EVATECH was seeking a strategic buyer with complementary product offerings.
A-Power expects to sign a definitive purchase agreement with EVATECH by September and close the transaction by the end of November 2009. A-Power said its initial plan is to keep EVATECH’s two current R&D centers in Japan while moving the production of thin-film PV panels and TCO glass coating to China.
EVATECH sells to customers in about 10 countries outside Japan, including China, which is EVATECH’s largest overseas market.
In January, A-Power and GE (NYSE: GE) announced plans to form a joint venture partnership for a wind turbine gearbox assembly plant in China.
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