SHENYANG, China, Jan. 27 /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 it has entered
into a definitive agreement with China Machine-Building International
Corporation ("CMIC") to co-develop a turn-key solution in the construction of
a major cement plant in Vietnam.
This DG project with CMIC has commenced immediately with the construction
duration of 12 months. The total contract has a value of approximately 40
million dollars with a down payment within 10 days from the contract date. No
other details were disclosed.
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 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. In addition to the
establishment of strategic relationships with world's leading wind energy
design and engineering companies, A-Power has formed joint research programs
with Tsinghua University and the China Academy of Sciences to develop and
commercialize other renewable energy technologies. For more information,
please visit http://www.apowerenergy.com .
About China Machine-Building International Corporation
Founded in 1980, China Machine-Building International Corporation (CMIC)
is a multi-functional international corporation specialized in contracting
international engineering projects, exporting complete plants and equipment,
engaging in external economic and technical cooperation. With its high quality
equipment, mature technology and established economic and technological
cooperation with various countries in the world, CMIC has formed stable
economic cooperation relationships with hundreds of enterprises all over the
world. In 1981 CMIC successfully signed a contract of turnkey project for one
unit of 210 MW for Guddu Thermal Power Station in Pakistan, which was the
first large-scale thermal power generation equipment made in China and entered
into the international market. CMIC has undertaken the project of sugar-cane
production plant with daily crushing capacity of 8000 tons for Wangkanai Sugar
Co. Ltd., Thailand. CMIC has also contracted and constructed such projects as
heavy-duty machinery plant, hydro-power plant, electricity transmission line,
water supply project, cement plant, floating glass plant, forging and pressing
plant, pump works, agricultural machinery plant and the other plants for
Pakistan, Peru, Sri Lanka, Romania, Angola, Vietnam, Laos, Myanmar, Indonesia,
Algeria, Sudan, etc. CMIC has acquired manufacturing technology for 300 MW and
600 MW steam turbines and generators for fossil-fueled power generation plants
from the Westing House U.S. In cooperation with Germany and Japan firms, CMIC
has undertaken the joint design and co-production for 2050mm continuous hot
strip rolling mills and 1900mm slab continuous casting plant for Baoshan Iron
and Steel Complex, and the complete mechanical and electrical equipment for
port handling used in the Qinghuangdao port project Phase II. And CMIC has
contracted more than 1000 technology transfer projects for mechanical and
electrical industries of China and imported various types of machinery and
equipment worth billions of U. S. Dollars. CMIC is a subsidiary company of
China National Machinery Industry Corporation.
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 may not be able to complete
the acquisition with our acquisition target; our acquisition target is
undergoing restructuring in local courts, which may interfere with our ability
to close the acquisition of the target company; our acquisition target's
restructuring process in local courts relates to financial difficulties it
experienced in the operation of its business, and it may continue to
experience financial difficulties after we acquire it; we may not be able to
obtain all of, or any of, the government subsidies related to the acquisition
of the target company; our acquisition consideration is in the form of cash
payment, which is a significant amount of our total cash balance available as
of September 30, 2009, and this may affect our liquidity, and may result in
our inability to provide working capital for our ongoing operations and
expansion; our technicians may have difficulty adapting to new 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 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/A 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.
For more information, please contact:
John S. Lin
Chief Operating Officer
A-Power Energy Generation Systems
Email: john@apowerenergy.com
Dixon Chen
Investor Relations
Grayling
Tel: +1-646-284-9403
Email: dixon.chen@us.grayling.com
SOURCE A-Power Energy Generation Systems, Ltd.