SHENYANG, China, Oct. 6 /Xinhua-PRNewswire-FirstCall/ -- A-Power Energy Generation Systems, Ltd. (Nasdaq: APWR) ("A-Power"), announced today that it has signed its second sales contract with China National Automation Control System Corp. ("CACS") (www.cacs.com.cn) for the sale of 50 2.7 MW wind turbines. This is in addition to the previously announced contract with CACS for five 2.7MW units. These units are expected to be delivered by July, 2009.
These 2.7MW wind turbines will be produced at A-Power's new wind turbine production facility in Shenyang, China with components the company has secured from Fuhrlander AG and other European wind power component suppliers, which will begin arriving in November. This facility consists of two production lines with a designed annual capacity of 300 units of 2.7MW wind turbines and 420 units of 750kW wind turbines, totaling over 1.1GW in annual output.
CACS, a subsidiary of China National Machinery & Equipment Group, has been a leading provider of power generation solutions to both China and the international markets since 1981. A-Power will supply wind turbines to CACS' wind farm projects in the Gansu province and the Inner Mongolia Autonomous Region.
Mr. Shenghang Wang, General Manager of, CACS commented, "We look forward to our expanded relationship with A-Power. Their 2.7MW wind turbine has already been market tested by Fuhrlander in Europe and is currently the largest land-based wind turbine that is commercially available to us in China. These large turbines will help us achieve a greater amount of wind energy output in each of our new wind farms in Gansu and Inner Mongolia."
Mr. Jinxiang Lu, A-Power's Chairman and CEO commented, "As expected, we continue to turn our previously announced wind turbine LOIs into sales contracts and we are excited to announce the contract for an additional 50 2.7MW wind turbines with CACS.
We are currently in late-stage discussions to sign additional contracts with CACS and the other parties that had signed letters of intent with A-Power in Q1 2008, which in aggregate provide for an additional 325 wind turbines. In addition, we are in discussions with a number of new potential buyers. Based on these discussions, we expect to announce additional contracts over the coming months for both our 2.7MW and 750kW wind turbine units."
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 entered 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.
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, about A-Power. Forward-looking statements are statements that are not historical facts, including statements relating to expected future contracts and related delivery schedules. Such forward-looking statements, based upon the current beliefs and expectations of A-Power's management, are subject to risks and uncertainties, which could cause actual results to differ from the forward looking statements. The following factors, among others, could cause actual results to differ from those set forth in the forward-looking statements: business conditions in China; continued compliance with government regulations; legislation or regulatory environments, requirements or changes adversely affecting the businesses in which A-Power is engaged; cessation or changes in government incentive programs; fluctuations in customer demand; production delays, component shortages, management of rapid growth and transitions to new markets; intensity of competition from or introduction of new and superior products by other providers of distributed power generation and other energy generation technology; timing, approval and market acceptance of new product introductions; general economic conditions; and geopolitical events, as well as other relevant risks detailed in A-Power's filings with the Securities and Exchange Commission. The information set forth herein should be read in light of such risks. Neither A-Power nor GaoKe assumes any obligation to update the information contained in this press release.
For more information, please contact:
Ian Shanno
Union IR
(310) 928-3780
