China Power Equipment Co-Hosts Industry Conference on Using Amorphous Transformers to Improve Rural Power Grid Performance
XI’AN, China, June 16, 2011 /PRNewswire-Asia-FirstCall/ — China Power Equipment, Inc. (“China Power” or “China Power Equipment” or the “Company,” OTCBB: CPQQ), the designer, manufacturer, and distributor of a new generation of energy saving electric transformers and transformer cores in the People’s Republic of China, today reported a summary of the conference it co-hosted with Asia Energy Platform to help improve the electric grid performance in rural China and other countries.
The GTec-expo 2011 Rural Electrification Conference, held in Xi’an on June 14, attracted more than 30 industry experts and high level industry and government leaders. The conference focused on the application of amorphous alloy core power distribution transformers in rural power grids. The event was part of the GTec 2011 conference series.
Industry leaders presented and hosted constructive discussions about developments and innovations in the amorphous alloy transformer industry. Conference leaders and participants made several important suggestions that should benefit the industry’s long-term development. By bringing together so much expertise from government and industry, the conference will have a lasting and profound benefit to the development and use of amorphous alloy transformers in China.
China’s Twelfth Five-Year Plan has attached great importance to rural power grid development. At the Executive meeting of the State Council held on January 5, 2011, Premier Wen Jiabao put forward a plan for additional reforms and upgrade projects for rural power grids, and said China expected that the first phase of investment to boost rural grid performance would exceed RMB 300 billion in the following 2 to 3 years.
The conference attracted the participation of several large and influential companies in the industry, including Xi’an Amorphous Alloy Zhongxi Transformer Co., Ltd., the Company’s affiliated operating company and a leader in the design, engineering, and manufacture of amorphous alloy cores and amorphous alloy transformers in western China, Hitachi Metals Ltd., one of the leading manufacturers of amorphous material in the world, and Advanced Technology & Materials Co., Ltd. (AT&M), the domestic leading manufacturer of amorphous materials in China.
Mr. Yongxing Song, Chairman of China Power Equipment, pointed out that with China’s booming economy, which is increasing demand for electricity in rural areas, and growing concerns over the environment, it is necessary to build a stable, effective, and environmental-friendly power transmission and distribution network. He believes that the characteristics of the amorphous distribution transformer (which reduces typical no-load electricity loss by more than 70%) are especially suitable for the rural power grid and will deliver energy savings and emission reductions.
Mr. Zhenfeng Li, vice president of Hitachi Metals’ Asia branch, said that no-load electricity losses account for a significant portion in the operating costs of rural power grids, and that amorphous alloy core transformers, by reducing the no-load losses, can instantly and effectively improve the rural power grids’ operating efficiency and supply of electricity to customers. However, he said, large initial capital outlays and procurement costs and moving from proof of concept to large-scale production and installations will require substantial funding from both public and private sources.
Mr. Guodong Liu, the general manager of Amorphous Product Branch of AT&M, said that AT&M has been conducting research on amorphous material since1976. As of 2010, it had already completed the construction of an amorphous alloy production line with a capacity of 40,000 metric tons, which made China the second country mastering the industrial production of amorphous alloy at high volume. He said that AT&M’s total output could increase to 100,000 metric tons by 2013 to help fulfill the development requirements of amorphous alloy transformers in China and to ensure that AT&M’s competitiveness stays at the forefront in the world market.
During the meeting, attendees had in-depth discussions and joint analyses about the technology, the market, and the financing of amorphous alloy material and amorphous transformers, and also exchanged advice and viewpoints about the outlook for future developments in the amorphous alloy transformer market and its support industry.
About China Power Equipment, Inc.
China Power Equipment, Inc., is a U.S. corporation, which through its wholly-owned subsidiary, An Sen (Xi’an) Power Science & Technology Co., Ltd., and its affiliated operating company, Xi’an Amorphous Alloy Zhongxi Transformer Co., Ltd., designs, manufactures, and distributes amorphous alloy transformer cores and amorphous alloy core distribution transformers in the People’s Republic of China. The company currently manufactures 59 different products, primarily amorphous alloy cores and amorphous alloy core transformers.
About GTEC 2011 Rural Electrification Conference
GTEC 2011 Rural Electrification Conference explained the current situation and outlook for rural power supply in China. It also reviewed the available technology and financing options. This conference series will provide a platform for the industrial practitioners to share their experiences and products with stakeholders. It also will provide opportunities to build networks in this sector. The conference series will include service providers of rural electric power in Europe. It provides an outstanding opportunity for attendees to learn about the rural power outlook in China and other countries. This should also encourage cooperation between Chinese firms and foreign firms.
Safe harbor statement
Certain statements in this release concerning our future growth prospects are forward-looking statements made pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1995, which involve a number of risks and uncertainties that could cause actual results to differ materially from those in such forward-looking statements. These forward-looking statements can be identified by terminology such as “anticipates,” “believes,” “could,” “estimates,” “expects,” “future,” “intends,” “plans,” “should,” “will,” and similar statements.
The risks and uncertainties relating to these statements include, but are not limited to, risks and uncertainties regarding the success of the company’s investments, risks and uncertainties regarding fluctuations in earnings, its ability to sustain its previous levels of profitability including on account of its ability to manage growth, intense competition, wage and inflation increases in China, its ability to attract and retain highly skilled professionals, time and cost overruns on fixed-price, fixed-time frame contracts, client concentration, its ability to successfully complete and integrate potential acquisitions, withdrawal of governmental fiscal incentives, political instability and regional conflicts, and legal restrictions on raising capital or acquiring companies outside China.
Additional risks that could affect the company’s future operating results are more fully described in its filings with U.S. Securities and Exchange Commission. These filings are available at www.sec.gov and at www.chinapower-equipment.com.
The company may, from time to time, make additional written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission on forms 10-K, 10-Q, and 8-K, in its annual report to shareholders, in news releases and other written materials, and in oral statements made by its officers, directors, or employees to third parties. The company does not undertake to update any forward-looking statements that may be made from time to time by or on its behalf, except as required under law.
For more information about China Power Equipment, please visit its website at www.chinapower-equipment.com.
For more information, please contact: Ms. Nicole Chen (English and Chinese) Vice President of Finance China Power Equipment, Inc. Telephone +86 (29) 6261 9758 Mobile +86 186 1633 1170 Email: firstname.lastname@example.org or Christensen Mr. Chen Yuanyuan (English and Chinese) Mobile +86 139 2337 7882 email@example.com Mr. Tom Myers (English) Mobile +86 139 1141 3520 in Beijing firstname.lastname@example.org Ms. Kathy Li (English and Chinese) Telephone +1 212 618 1978 in the USA email@example.com www.chinapower-equipment.com
SOURCE China Power Equipment, Inc.