Company to Also Acquire Shenyang Huaren's Back Orders in China of 10 Units of the 1.5MW Wind Turbines
SHENYANG, China, July 28 /PRNewswire-Asia/ -- 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 signed an agreement with Shenyang Huaren Wind Power Technology Development Co., Ltd. ("Huaren") to acquire Huaren's proprietary technology to commercially produce and sell 1.5MW-grade wind turbines. In addition, A-Power has agreed to fulfill Huaren's back order of ten units of the same turbines with a customer in China.
Pursuant to the contract, Huaren will transfer, within a month of the signing of the contract, the blueprints, the technical specifications and other related studies and manuals for the 1.5MW double-fed, variable-speed and constant-frequency wind turbines developed by Huaren to A-Power as well as its wind power business divisions. Huaren's technicians will train and direct A-Power's engineers and technicians on the assembly, installation and testing of the first prototype wind turbines based on Huaren's technology. The contract expires July 28, 2012.
Based in Shenyang City, Liaoning Province, Huaren is a wind turbine technology licensing, consulting and training firm with more than 50 engineers. It is affiliated with the Wind Power Technology Research Institute of Shenyang Industrial University. For more information, please visit Huaren's Chinese-language Website at http://www.hrwind.com/Html/main.asp .
Upon receiving the 1.5MW wind turbine technology from Huaren, A-Power will apply for related patents and other intellectual property protection.
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 FUHRLANDER 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.
