On September 16, 2009, the Company signed a definitive contract to acquire 100% of EVATECH, a 22-year-old designer and manufacturer of industrial equipment for LCDs (liquid crystal displays), PDPs (plasma display panels) and, more recently, amorphous-silicon (a-Si) photovoltaic (PV) panels.
The total consideration is US$49.9 million in cash. EVATECH is currently undergoing a rehabilitation process in the courts of Japan related to its corporate and debt restructuring. A-Power is to fund 100% of the transaction, 45% of which is expected to be reimbursed from foreign-investment grants from various levels of the local government in China. The transaction was expected to be funded by the Company and close prior to December 31, 2009; however, the Company applied to the courts in Japan for an extension of the funding date to January 25, 2010, which was granted.
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 25 MW to 400 MW.
In 2008, A-Power entered the wind power market and has built China’s largest wind turbine manufacturing facility, located in Shenyang, Liaoning Province, with a total annual production capacity of 1,125 MW. 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.
In addition to the establishment of strategic relationships with world’s leading wind energy design and engineering companies, A-Power has formed joint research programs with Tsinghua University and the China Academy of Sciences to develop and commercialize other renewable energy technologies.