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

A-Power Energy Generation Systems Ltd. Forms JVs with Jiangsu Miracle Logistics System Engineering Co., Ltd. to Manufacture and Sell Key Wind Turbine Components

Posted on: Tuesday, 18 August 2009, 08:27 CDT

SHENYANG, China, Aug. 18 /PRNewswire-Asia-FirstCall/ -- A-Power Energy Generation Systems Ltd. (Nasdaq: APWR) ("A-Power" or "the Company"), a leading provider of distributed power generation ("DG") systems in China and a fast-growing manufacturer of wind turbines, today announced that it has entered into definitive agreements to form two joint ventures ("JVs") with Jiangsu Miracle Logistics System Engineering Co. Ltd. (Shenzhen Stock Exchange: 002009; "Jiangsu Miracle"). The JVs will mainly engage in manufacturing and sales of key wind turbine components in China.

Pursuant to the agreements, the first JV, called Shenyang Tianxiang Wind Equipments Manufacturing Co., Ltd. ("Shenyang Tianxiang"), will manufacture rotor blades, hubs, nacelle covers, and other key components for wind turbines. A-Power will invest $1.5 million (RMB 10.2 million) in cash for 51% of the JV, and the rest, $1.4 million (RMB 9.8 million), or 49%, will be provided by Jiangsu Miracle. Shenyang Tianxiang's plant will be located in Shenyang City and all necessary molds will be supplied by Jiangsu Miracle.

The second JV, Shenyang Tianrui Wind Equipments Sales Company Co., Ltd. ("Shenyang Tianrui"), will focus on marketing and sales of the wind components made by Shenyang Tianxiang. A-Power will invest $359,000 (RMB 2.45 million) in cash for 49% of the JV, and the rest, $373,000 (RMB 2.55 million), or 51%, will be provided by Jiangsu Miracle.

Most of the components made by Shenyang Tianxiang will be purchased by A-Power and the remainder will be sold through Shenyang Tianrui to various other customers.

Jiangsu Miracle is listed on the Shenzhen Stock Exchange in China with a market cap of around $300 million, according to Google Finance. It started manufacturing wind turbine components in 2005.

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 FUHRL?NDER 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. For more information, please visit http://www.apowerenergy.com .

Safe Harbor Statement

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: We are dependent on our licensing partners, and events involving these licensing partners or any future licensing partners could prevent us from developing our wind turbine business; our technicians may have difficulty adapting our licensed technology; systems that we develop and install may contain design or manufacturing defects, which could result in reduced demand for our services and customer claims and uninsured liabilities; we expect to rely increasingly on our proprietary products and systems and on technology developed by our licensors, and if we or our licensors become involved in an intellectual property dispute, we may be forced to spend a significant amount of time and financial resources to resolve such intellectual property dispute, diverting time and resources away from our business and operations; our limited operating history and recent entrance into new markets may make it difficult for you to evaluate our business and future prospects; the expected benefits of supply and partnership agreements may not materialize to the extent expected or at all 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, 2008. 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.

SOURCE A-Power Energy Generation Systems Ltd.

Source: PR Newswire

More News in this Category