Chinese wind-turbine maker A-Power Energy Generation Systems, Ltd. (Nasdaq: APWR) and the U.S. Renewable Energy Group (US-REG) have signed a cooperation agreement for the development and construction of a new production and assembly plant in the United States.
The facility is expected to be 320,000 square feet and produce 1,100 megawatts (MW) of wind energy turbines annually. Upon completion, the facility is expected to employ approximately 1,000 workers and will create additional wind jobs during the construction process.
The companies did not announce a location for the facility.
In addition to production and assembly at the new plant, the plan calls for many of the key wind turbine components to be sourced from U.S. manufacturers.
Last month, Shenyang Power Group (SPG) and US-REG announced plans to develop a $1.5 billion, 600MW wind farm across approximately 36,000 acres in Texas, for which A-Power has been designated as the turbine supplier.
A-Power is a shareholder of SPG.
The construction of the assembly and production plant is subject to further due diligence and the signing of definitive agreements between the parties, as well as various government approvals.
US-REG is a U.S.-based private equity firm that mobilizes and facilitates the participation of international financing and investment in large-scale renewable energy projects within the United States.
SPG is a renewable energy industry alliance based in Shenyang, China. SPG’s member companies range from power equipment makers to engineering service providers, including A-Power. The alliance was created to integrate local resources and leverage the manufacturing, engineering and government initiatives in the Shenyang area so that SPG can pursue large-scale, international projects in the alternative energy sector.
A-Power Energy Generation Systems Ltd., 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. A-Power also has strategic relationships with Tsinghua University in Beijing and the China Academy of Sciences in Guangzhou to develop and commercialize other renewable energy technologies.
In August, A-Power announced plans to acquire Japanese thin-film solar firm Evatech.
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