A-Power Receives LOIs for 380 2.5 MW Wind Turbines
February 01 2008 - 9:21AM
Business Wire
A-Power Energy Generation Systems, Ltd. (NASDAQ: APWR, APWRW,
APWRU) ("A-Power"), announced today that its wholly owned Chinese
operating subsidiary, Liaoning GaoKe Energy Group (�GaoKe�), has
received letters of intent for 380 2.5 MW wind turbines, a number
that will utilize all of its anticipated plant capacity through
2009. The company is presently engaged in negotiations to finalize
these contracts and turn them into purchase orders. As was
previously announced, the first phase of the plant is scheduled to
be completed in the third quarter of this year. Mr. Edward Meng,
A-Power�s CFO commented, �As we have previously announced, we have
recently acquired rights to both 2.5 MW turbines from Fuhrlander AG
of Germany and 225 kW and 750 kW turbines from Norwin A/S of
Denmark and we are planning to begin producing these in our new
facility in Shenyang later this year. At this time we are very glad
to report that we have already received a number of letters of
intent that aggregate to 380 units to purchase the 2.5 MW turbines.
In addition, we have received a number of LOI�s for Norwin�s 750 KW
turbines. As previously stated, the sales price for the 2.5MW wind
turbine is expected to be RMB 20 to 24 million ($2.7 to $3.2
million), while the 750kw turbine is expected to sell for RMB 3.4
to 3.7 million ($0.46 to $0.51 million). Both are expected to have
gross margins of approximately 8 to 12%. In order to meet this
demand as quickly as possible, we are making arrangements to import
many of the subassemblies from suppliers around the world that
presently supply Fuhrlander and Norwin. Over time we are confident
that we will be able to identify second-source qualified suppliers
for many of these subassemblies in China to further improve the
gross margins.� This press release contains forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995, about A-Power and GaoKe. Forward-looking
statements are statements that are not historical facts, including
statements about anticipated sales, prices and margins of our
products and planned completion and production capabilities of our
new facility. Such forward-looking statements, based upon the
current beliefs and expectations of A-Power�s and GaoKe�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 GaoKe is
engaged; cessation or changes in government incentive programs:
fluctuations in customer demand; management of rapid growth and
transitions to new markets; intensity of competition from or
introduction of new and superior products by competitors; timing,
approval and market acceptance of new product introductions;
general economic conditions; geopolitical events and regulatory
changes, 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.
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