ERIE, Pa. and SHENYANG, China, Jan. 12 /PRNewswire-Asia-FirstCall/ --
GE Drivetrain Technologies, a unit of GE Transportation, and A-Power Energy Generation Systems (Nasdaq: APWR) announced today that they have signed two Letters of Intent (LOI), one for GE Drivetrain Technologies to supply A-Power with 2.7 megawatt (MW) wind turbine gearboxes and a second to establish a Joint Venture partnership for a wind turbine gearbox assembly plant.
(Photo: http://www.prnasia.com/sa/2009/01/12/200901122212.jpg )
Under the supply agreement, GE Drivetrain Technologies will supply A-Power with more than 900 2.7 MW gearboxes beginning in 2010. “We’re excited about the opportunity to serve A-Power,” said Prescott Logan, Business Leader GE Drivetrain Technologies. “The speed and focus that A-Power has brought to building its wind turbine business, combined with the highly reliable design of its Fuhrlander 2.7 MW turbine, position A-Power well for long-term success in China and the broader global market.”
Added Logan: “Our agreement with A-Power is part of our larger strategy to build our customer base through key strategic partnerships, expand into new geographies, and develop innovative drive train systems that leverage GE Drivetrain Technologies’ more than 100 years of designing and manufacturing electromechanical drives.”
The companies’ joint venture agreement creates a wind turbine gearbox assembly business that will be majority owned by GE Drivetrain Technologies and operate under the name GE Transportation. The new assembly plant will bring multi-megawatt gearbox capacity to China and serve as GE Drivetrain Technologies’ Southeast Asia manufacturing center from which it will serve its customers in the region beginning in mid-2010.
The Joint Venture company will take advantage of A-Power’s knowledge of the local market, as well as of GE Drivetrain Technologies’ process and quality expertise.
Establishing a joint venture with a strong partner such as A-Power is consistent with GE Transportation’s approach to the global market. “GE’s successful history of conducting business in China is based on our belief that we must operate as a local company,” said Tim Schweikert, President of GE Technology Infrastructure in China. “We appreciate the value of a local perspective as we bring advanced wind drive train technology to the forefront in China.”
The combination of these two agreements fits well with A-Power’s business strategy and complements investments that it has already made to build a world-class wind turbine business. “Our gearbox supply agreement and JV partnership with GE Drivetrain Technologies represent another significant building block in the foundation of our wind turbine business,” said John S. Lin, Senior Vice President, Director, Chief Strategy Officer and acting Chief Financial Officer of A-Power. “We are pleased to partner with a company such as GE that brings global quality standards, renowned engineering expertise, proven design, and a commitment to a local supply chain.”
These agreements support China’s initiative to increase wind energy output from one gigawatt in 2005 to 30 gigawatts by 2020 and are the basis for additional future investments by GE Drivetrain Technologies in its local supply chain and advanced wind turbine drive train products, such as its IntegraDrive geared generator.
About GE Transportation
Established more than 100 years ago, GE Transportation, a unit of General Electric Company (NYSE: GE), is a global technology leader and supplier to the railroad, marine, drilling, mining and wind industries. GE provides freight and passenger locomotives, railway signaling and communications systems, information technology solutions, marine engines, motorized drive systems for mining trucks and drills, high-quality replacement parts and value added services. With sales in excess of $4.5 billion, GE Transportation is headquartered in Erie, PA, and employs approximately 10,000 employees worldwide. For more information visit http://www.getransportation.com .
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 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 in Beijing and the China Academy of Sciences in Guangzhou.
This press release may contain forward-looking statements. Any such statement is made within the ‘safe harbor’ provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates,” and other similar statements. Statements that are not historical facts, including statements relating to anticipated future earnings, margins, and other operating results, future growth, construction plans and anticipated capacities, production schedules and entry into expanded markets are forward-looking statements. Such forward-looking statements, based upon the current beliefs and expectations of our management, are subject to risks and uncertainties, which could cause actual results to differ materially from the forward-looking statements, including but not limited to, the risk that: the expected benefits of the supply and partnership agreements may not materialize to the extent expected or at all; we expect to rely increasingly on our proprietary products and systems and on technology developed by our licensors and partners, and if we or our licensors or partners become involved in an intellectual property dispute, we may be forced to spend considerable resources resolving such dispute; a decrease in the rate of growth of China’s industry and economy may lead to a decrease in our revenues because industrial companies in China are our principal source of revenues; decreases in the price of oil and gas could reduce demand for our wind turbine systems, as well as other relevant risks detailed in our filings with the Securities and Exchange Commission, including those set forth in our annual report filed on Form 20-F for the fiscal year ended December 31, 2007. The information set forth herein should be read in light of such risks. We assume no obligation to update the information contained in this press release, except as required under applicable law.
For more information, please contact:
GE Media Contact:
Stephan Koller
Tel: +1-814-875-3457 (office)
Tel: +1-814-431-3150 (cell)
Email: stephan.koller@ge.com
Chris Banocy
Tel: +1-814-875-2099 (office)
Tel: +1-814-431-9519 (cell)
Email: chris.banocy@ge.com
A-Power Contact:
John S. Lin
Tel: +1-626-636-6366 (US)
Tel: +86-139-111-32618 (China)
Email: john@apowerenergy.com
