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A-Power Energy Signs Its First Wind Turbine Sales Contract
Shenyang, China (SPX) Sep 24, 2008 A-Power Energy Generation Systems, Ltd. ("A-Power"), announced today that it has signed a sales contract with China National Automation Control System Corp. ("CACS") for the sale of five 2.7 MW wind turbines. Delivery of the five units is planned to occur in Q4 2008. These wind turbines will be the first to be produced at A-Power's new wind turbine production facility in Shenyang, China. This facility consists of two production lines with a designed annual capacity of 300 units of 2.7MW wind turbines and 420 units of 750kW wind turbines, totaling over 1.1GW in annual output. CACS, a subsidiary of China National Machinery and Equipment Group, has been a leading provider of power generation solutions to both China and the international markets since 1981. A-Power will supply wind turbines to CACS' wind farm projects in the Gansu province and the Inner Mongolia Autonomous Region. Mr. Jinxiang Lu, A-Power's Chairman and CEO commented, "We are excited to announce the first sales contract to come from our previously announced wind turbine LOIs. These 2.7MW units will be the largest land based wind turbines commercialized to-date in China and, for this reason, we are experiencing a surge of interest from buyers throughout the country. Now that we have determined the pricing and delivery schedule for our wind turbine components, we intend to convert the remainder of our wind turbine LOIs into sales contracts. "We are currently in late-stage discussions to sign additional contracts with CACS and the other parties that had signed letters of intent with A-Power in Q1 2008, which in aggregate provide for an additional 375 wind turbines. In addition, we are in discussions with a number of new potential buyers. Based on these discussions, we expect to announce additional contracts over the coming months for both our 2.7MW and 750kW wind turbine units. "CACS and other potential customers have expressed a great amount of confidence in A-Power's wind business which combines reliable European technology, a standard one-year warranty and a successful track record of commercial operation with an experienced team of energy professionals. We are very excited to begin working with CACS to deploy clean wind energy technology throughout China."
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