• E-mail
• Print
• Comment
• Font Size
• Digg
• del.icio.us
• Discuss article

A-Power Energy Generation Systems Ltd.-Led Local DG Industry Alliance to Receive $44 Million from Shenyang Government

Posted on: Tuesday, 16 June 2009, 06:10 CDT

SHENYANG, China, June 16 /PRNewswire-Asia-FirstCall/ -- A-Power Energy Generation Systems, Ltd. (Nasdaq: APWR; "A-Power" or "the Company"), a leading provider of distributed power generation systems in China and a fast-growing manufacturer of wind turbines, today announced it was briefed on a Shenyang government plan to invest a total of $44 million (RMB 300 million) in seed capital in Shenyang Power Group ("Shenyang Power"), the newly formed local DG industry alliance spearheaded by A-Power and joined by power industry conglomerates to pursue large-scale electricity-generation projects both within and outside China. In addition, the Shenyang government will also appoint a local Chinese bank and a local guaranty company to participate in the Shenyang Power alliance.

According to the plan, the city of Shenyang will seed $29.3 million (RMB 200 million) through a government-owned asset management firm, which will give Shenyang a 20% stake in the alliance. In addition, the government is to provide a subsidy of $14.7 million (RMB 100 million) -- to be paid in installments by 2011 -- to Shenyang Power. A-Power is the lead investor in Shenyang Power and now owns 60% after today's investment by the Shenyang government.

"We are very pleased that our city has made a firm commitment to supporting a power industry turnkey solution provider using Shenyang's vast local resources," said Mr. Jinxiang Lu, Chairman and CEO of A-Power and CEO of Shenyang Power. "With the government as our partner, Shenyang Power will be nicely positioned and well-equipped to create economies of scale by aggregating the potentials of the power industry, talented individuals as well as natural resources in the local area. We are excited and more confident to go after DG projects with large-scale, technologically advanced and managerially sophisticated electricity-generation systems both within China and overseas."

About A-Power

A-Power Energy Generation Systems Ltd. ("A-Power"), 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. 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. For more information, please visit http://www.apowerenergy.com .

SOURCE A-Power Energy Generation Systems, Ltd.

Source: PR Newswire

More News in this Category