NEW YORK (AP) -- Chinese wind turbine manufacturer A-Power Energy Generation Systems Ltd. said Wednesday it agreed to buy Japan's Evatech Co. Ltd. for $49.9 million.
Evatech makes industrial equipment for liquid crystal displays, plasma display panels and amorphous-silicon photovoltaic panels, letting A-Power expand into the solar market while taking advantage of Chinese solar subsidies.
Evatech employs 85 workers and has branches in Tokyo, Shanghai and Taiwan.
The deal, expected to close by the end of November, is expected to contribute an unspecified amount of revenue to A-Power in late 2010. A-Power said it will fund 55 percent of the transaction from the company's internal financial resources. The balance will come from foreign-investment grants from various levels of local government.
A-Power plans to move Evatech's manufacturing facility to Shenyang by year-end and start production and co-marketing of photovoltaic products with a local construction group sometime next year, the company said. Evatech's main facility and its thin-film photovoltaic research and development center are currently located in Kyoto, Japan. An A-Power spokesman said there are no current plans for layoffs.
Shares of A-Power rose 41 cents, or 3.7 percent, to $11.63 in afternoon trading.