A-Power (APWR) Signs Wind Turbine Gearbox Deal With GE, Shares Rise

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08:47:30 am on January 13, 2009

A-Power announced yesterday that it has signed a deal for a joint venture with GE Drivetrain Technologies.Under the terms of the agreement, the companies will work together to create a wind turbine gearbox assembly business. GE Drivetrain will own the majority of the business.

The companies also entered into a supply agreement, under which GE will provide more than 900 2.7 MW gearboxes to A-Power, starting in 2010.

According to CNN Money:

The companies said the agreements will improve A-Power’s long-term position in China and the broader global market as well as build GE Drivetrain Technologies’ customer base and launch the company into new geographies. The deals also support China’s initiative to increase wind energy output to 30 gigawatts by 2020 from one gigawatt in 2005.

In recent trading, A-Power shares rose 24% to $6.09. The stock, which is down 51% in the last 12 months, traded as high as $6.38.

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