A-Power Energy Signs Its First Sales Contract for 2.7 MW Wind Turbines
A-Power Energy Generation Systems, Ltd. (NASDAQ:APWR) (“A-Power”), announced today that it has signed a sales contract with China National Automation Control System Corp. (“CACS”) for the sale of five 2.7 MW wind turbines. Delivery of the five units is planned to occur in Q4 2008.
These wind turbines will be the first to be produced at A-Power’s new wind turbine production facility in Shenyang, China. 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. Jinxiang Lu, A-Power’s Chairman and CEO commented, “We are excited to announce the first sales contract to come from our previously announced wind turbine LOIs. These 2.7MW units will be the largest land based wind turbines commercialized to-date in China and, for this reason, we are experiencing a surge of interest from buyers throughout the country. Now that we have determined the pricing and delivery schedule for our wind turbine components, we intend to convert the remainder of our wind turbine LOIs into sales contracts.
“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 375 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.
“CACS and other potential customers have expressed a great amount of confidence in A-Power’s wind business which combines reliable European technology, a standard one-year warranty and a successful track record of commercial operation with an experienced team of energy professionals. We are very excited to begin working with CACS to deploy clean wind energy technology throughout China.”
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 Academy of Sciences 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.