A-Power Energy (APWR) is becoming quite the one stop shop for greenenergy solutions in China. The company is now involved in windturbines, biofuels, LNG and with today’s announcement of its MOU to purchase EvaTech,thin film solar. The all cash transaction of $50 million will befunded by government subsidies (about 40 – 45%) and loans. APWRexpects to sign a definitive purchase agreement with EVATECH by nextmonth and the close the transaction by the end of November. EvaTechhad been seeking a strategic buyer during its restructuring process inthe courts of Japan. APWR will keep their R&D centers in Japan butmove production of thin film batteries and TCO glass coating to Chinain order to reduce production costs.
”We are truly excited about the potential of adding EVATECH’sadvanced thin-film solar technology to our reservoir of expertise inthe design,manufacturing and installation of clean energy systems,”said Mr. Jinxiang Lu,A-Power’s Chairman and CEO. “The timing isfortuitous for alternative energy developers in China. Our centralgovernment just last month announced the ‘Golden Sun’ project tosubsidize up to 70% of the costs of building solar farms with a totalcapacity of at least 500MW by 2012, versus the country’s currentcapacity of 80MW.” Mr. Lu continued, ”EVATECH has more than 20 years ofexperience in developing thin-film products, and since 2006, it hasbegun producing production lines for thin-film PV batteries, withdedicated R&D centers in Japan.
This is a very interesting purchase by APWR and will be interesting to follow. Nice job at Wind4Me for first highlighting this story before it broke.
Shares of APWR are currently trading modestly higher, up about 3%.