A-Power is to fund 55% of the transaction from the Company’s internal financial resources. The balance, or 45%, will come from foreign-investment grants from various levels of the local government (20% from the Liaoning Provincial Government, 20% from the Shenyang Municipal Government, and the remaining 5% from the Hunan New District Government in Shenyang).
"The EVATECH acquisition is an essential part of A-Power’s strategic vision to be an all-around, diversified cleantech solution provider in China," said Mr. Jinxiang Lu, Chairman and CEO of A-Power. "Growing out of our core DG business, we are establishing a foothold and gaining traction in various areas such as wind, and now solar. It is important to understand that all of these cleantech forms receive strong, committed support from the Chinese government. In terms of solar, we plan to use EVATECH’s low-cost and high-efficiency a-Si thin-film technology to produce PV curtain glass walls and take advantage of China’s RMB 20 per watt subsidy for the building-integrated photovoltaic (BIPV) projects. As part of the plan, we expect to move EVATECH’s manufacturing facility to Shenyang by the end of the year and start production and co- marketing of our PV products with a local construction group for Chinese customers sometime next year. We expect EVATECH to begin revenue contribution in late 2010."
Based in Kyoto, EVATECH currently has 85 employees and has branch offices in Tokyo, Shanghai and Taiwan. Its main manufacturing facility and its thin-film photovoltaic R&D center are located in Kyoto. It sells to customers in about 10 countries outside Japan, 46 of which are in China, which is EVATECH’s largest overseas market. Due to certain financial difficulties with the operation of its business, EVATECH is undergoing a rehabilitation process in the courts of Japan related to its corporate and debt restructuring.
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.