GE Drivetrain Technologies Signs LOIs with A-Power to Supply 900 Wind Turbine Gearboxes and Establish Joint Venture to Build Wind Turbine Assembly Facility

ERIE, Pa. and SHENYANG, China, Jan. 12 /PRNewswire-Asia-FirstCall/ —
GE Drivetrain Technologies, a unit of GE Transportation, and A-Power Energy
Generation Systems (Nasdaq: APWR) announced today that they have signed two
Letters of Intent (LOI), one for GE Drivetrain Technologies to supply A-Power
with 2.7 megawatt (MW) wind turbine gearboxes and a second to establish a
Joint Venture partnership for a wind turbine gearbox assembly plant.

(Photo: http://www.newscom.com/cgi-bin/prnh/20090112/CNM034 )

Under the supply agreement, GE Drivetrain Technologies will supply A-Power
with more than 900 2.7 MW gearboxes beginning in 2010. ”We’re excited about
the opportunity to serve A-Power,” said Prescott Logan, Business Leader GE
Drivetrain Technologies. ”The speed and focus that A-Power has brought to
building its wind turbine business, combined with the highly reliable design
of its Fuhrlander 2.7 MW turbine, position A-Power well for long-term success
in China and the broader global market.”

Added Logan: ”Our agreement with A-Power is part of our larger strategy
to build our customer base through key strategic partnerships, expand into new
geographies, and develop innovative drive train systems that leverage GE
Drivetrain Technologies’ more than 100 years of designing and manufacturing
electromechanical drives.”

The companies’ joint venture agreement creates a wind turbine gearbox
assembly business that will be majority owned by GE Drivetrain Technologies
and operate under the name GE Transportation. The new assembly plant will
bring multi-megawatt gearbox capacity to China and serve as GE Drivetrain
Technologies’ Southeast Asia manufacturing center from which it will serve its
customers in the region beginning in mid-2010.

The Joint Venture company will take advantage of A-Power’s knowledge of
the local market, as well as of GE Drivetrain Technologies’ process and
quality expertise.

Establishing a joint venture with a strong partner such as A-Power is
consistent with GE Transportation’s approach to the global market. ”GE’s
successful history of conducting business in China is based on our belief that
we must operate as a local company,” said Tim Schweikert, President of GE
Technology Infrastructure in China. ”We appreciate the value of a local
perspective as we bring advanced wind drive train technology to the forefront
in China.”

The combination of these two agreements fits well with A-Power’s business
strategy and complements investments that it has already made to build a
world-class wind turbine business. “Our gearbox supply agreement and JV
partnership with GE Drivetrain Technologies represent another significant
building block in the foundation of our wind turbine business,” said John S.
Lin, Senior Vice President, Director, Chief Strategy Officer and acting Chief
Financial Officer of A-Power. “We are pleased to partner with a company such
as GE that brings global quality standards, renowned engineering expertise,
proven design, and a commitment to a local supply chain.”

These agreements support China’s initiative to increase wind energy output
from one gigawatt in 2005 to 30 gigawatts by 2020 and are the basis for
additional future investments by GE Drivetrain Technologies in its local
supply chain and advanced wind turbine drive train products, such as its
IntegraDrive geared generator.

About GE Transportation

Established more than 100 years ago, GE Transportation, a unit of General
Electric Company (NYSE: GE), is a global technology leader and supplier to the
railroad, marine, drilling, mining and wind industries. GE provides freight
and passenger locomotives, railway signaling and communications systems,
information technology solutions, marine engines, motorized drive systems for
mining trucks and drills, high-quality replacement parts and value added
services. With sales in excess of $4.5 billion, GE Transportation is
headquartered in Erie, PA, and employs approximately 10,000 employees
worldwide. For more information visit http://www.getransportation.com .

About A-Power

A-Power Energy Generation Systems, Ltd., through its PRC operating
subsidiary, Liaoning GaoKe Energy Group Co., Ltd., is the largest provider of
distributed power generation systems in China and entered China’s wind energy
market in 2008. The Company is also focused on developing and commercializing
additional renewable energy technologies and has strategic relationships with
both Tsinghua University in Beijing and the China Academy of Sciences in
Guangzhou.

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: the
expected benefits of the supply and partnership agreements may not materialize
to the extent expected or at all; we expect to rely increasingly on our
proprietary products and systems and on technology developed by our licensors
and partners, and if we or our licensors or partners become involved in an
intellectual property dispute, we may be forced to spend considerable
resources resolving such dispute; a decrease in the rate of growth of China’s
industry and economy may lead to a decrease in our revenues because industrial
companies in China are our principal source of revenues; decreases in the
price of oil and gas could reduce demand for our wind turbine systems, 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, 2007. 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:

    GE Media Contact:
     Stephan Koller
     Tel:   +1-814-875-3457 (office)
     Tel:   +1-814-431-3150 (cell)
     Email: stephan.koller@ge.com

     Chris Banocy
     Tel:   +1-814-875-2099 (office)
     Tel:   +1-814-431-9519 (cell)
     Email: chris.banocy@ge.com

    A-Power Contact:
     John S. Lin
     Tel:   +1-626-636-6366 (US)
     Tel:   +86-139-111-32618 (China)
     Email: john@apowerenergy.com

[Via http://www.prnewswire.com]

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s


%d bloggers like this: