A-Power Energy (APWR) Connects with General Electric (GE)
Excellent news for
A-Power Energy (APWR) in terms of credibility - letter of intent signed with a unit of General Electric Drivetrain Technologies (GE). If the order of the deal was in reverse (APWR supplying GE) this would be enormous - but better than a sharp stick to the eye. So this now gives A-Power relationships with a large European wind focused company and one of the largest conglomerates on Earth.
- GE Drivetrain Technologies, a unit of GE Transportation, and A-Power Energy Generation Systems (Nasdaq: APWR - News) 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.
- 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.''
- 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.
We don't have a major position at this point since the chart was not so great entering the day, and I doubt anything will "run away" in this market so I'd expect this chart to fill in time.
Today's news pushed the stock from a 0.6% stake to 0.9% so I am going to dump half the position just over $6.
Long A-Power Energy in fund and personal account
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