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APWR .. A-Power Receives LOIs for 380 2.5 MW Wind Turbines
A-Power Receives LOIs for 380 2.5 MW Wind Turbines
Friday February 1, 10:21 am ET
SHENYANG, China--(BUSINESS WIRE)--A-Power Energy Generation Systems, Ltd. (NASDAQ: APWR - News, APWRW - News, APWRU - News) ("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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