GC China Turbine Corp. (“GC China” or the “Company”) (OTCBB: GCHT) today announced that has moved wind turbine production from the current assembly facility which is located in the East-Lake Development Zone to another assembly workshop to be provided by the Wuhan Municipal Government as an interim for ultimately moving the production to the assembly facility in Taonan, Jilin Province with the capacity to produce up to 500MW per annum (up to 200 2.5MW turbine units). The administrative office will continue to stay in Wuhan.
GC China’s current assembly facility is located in East-Lake Development Zone in Wuhan, with land coverage of 36,000m2. The facility was originally designed to produce accessories for small aircrafts. Given that the Company is the only wind power equipment manufacturer in Hubei Province, in support of the Company, the Wuhan Municipal Government provided such facility for at no cost to the Company in 2006 for the production and assembly of wind turbine products.
GC China has previously announced plans to expand its portfolio of wind turbines to produce 2.5MW turbines, which it believes will broaden its sales opportunities both into the domestic Chinese market and into other high growth wind power markets including Europe and North America. The East-Lake Development Zone facility is designed to withstand small tonnage cranes but is not sufficient to meet assembly requirements of the 2.5MW wind turbine.
The Company, through consultation and discussions with the Wuhan Government, will move from the current assembly facility, to an interim facility provided by the Wuhan Government at favorable costs, which is located in Jiangxia District of Wuhan.
Mr. Hou Tiexin, Chairman of GC China, stated that, “The interim facility satisfies all existing assembly requirements of the Company for 1MW and 1.1MW turbines. It is important to note that this move will not create any delays or impediments to fulfilling current business and production of 1MW and 1.1MW turbines. Upon the completion of the Taonan assembly facility, we plan to relocate production to Taonan so as to satisfy the production requirement of larger 2.5MW wind turbines. We expect to make this relocation to Taonan in the first quarter of 2012. Furthermore, the Taonan assembly facility is strategically located close to current key markets of the Company, which will help to reduce transportation costs. The relocation is not expected to have significant impacts to the Company’s production and operation.”
The Company intends to move all wind turbine production to the Taonan assembly facility before the end of 2011.
“In order to meet the needs of the overall economic development of Wuhan City, the contribution by GC-Nordic (the wholly owned subsidiary of GC China) is noteworthy. The Wuhan Municipal Government will continue to support GC-Nordic’s development, eventually making it one of the most successful enterprises in renewable energy industry in Hubei Province,” said by the leadership of Wuhan Municipal Government.
About GC China Turbine Corp.
GC China is a leading manufacturer of state-of-the-art 2-blade and 3-blade wind turbines based in Wuhan City of Hubei Province, China. The Company holds a license to manufacture a groundbreaking technology which meets rigorous requirements for low-cost and high reliability. For more information visit: www.gcchinaturbine.com
Notice Regarding Forward-Looking Statements
This news release contains “forward-looking statements” as that term is defined in Section 27A of the United States Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. Statements in this press release which are not purely historical are forward-looking statements and include any statements regarding beliefs, plans, expectations or intentions regarding the future. Such forward-looking statements include, among other things, completion of definitive agreements with local and provincial governments, wind farms and utility companies, number of wind turbine systems ordered, manufactured, delivered and installed, the Company’s future strategic plans, the outlook for the Company’s markets and the demand for its products, estimated sales, the development, costs and results of new business opportunities. Actual results could differ from those projected in any forward-looking statements due to numerous factors. Such factors include, among others, the inherent uncertainties associated with new projects and development stage companies. These forward-looking statements are made as of the date of this news release, and we assume no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those projected in the forward-looking statements. Although we believe that any beliefs, plans, expectations and intentions contained in this press release are reasonable, there can be no assurance that any such beliefs, plans, expectations or intentions will prove to be accurate. Investors should consult all of the information set forth herein and should also refer to the risk factors disclosure outlined in our annual report on Form 10-K for the most recent fiscal year, our quarterly reports on Form 10-Q and other periodic reports filed from time-to-time with the Securities and Exchange Commission.
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