A-Power completes first phase of wind turbine facility

Liaoning, China-based A-Power Energy Generation Systems (Nasdaq: APWR) announced today that it completed the construction of the first phase of its wind turbine production facility in Shenyang.

This is the company's first wind turbine plant and A-Power said the 310,000 square foot facility is the largest wind turbine production facility in China. Operations are expected to begin later this quarter, with first phase annual capacity to produce 300 2.5 megawatt turbines and 420 750 kilowatt turbines.

"This marks a significant event for A-Power as we anticipate that the wind business will quickly become a significant contributor to our revenue and earnings," said Jinxiang Lu, chairman and CEO of A-Power. "We are presently in the process of finalizing agreements with component suppliers in both China and Europe."

Lu said he expects orders to quickly exceed the capacity of the new facility, and that the company has already laid the foundation for phase 2 of the plant.

Phase 2 will increase the company's wind turbine production capacity by another 30 percent. Construction is scheduled to start in the fourth quarter of 2009. A-Power said phase 2 will be completed in about 4 months at a cost of approximately $10 million.

Through its subsidiary, Liaoning GaoKe Energy Group, A-Power said it's the largest provider of distributed power generation systems in China.