ERIE, Pa. (AP) -- A General Electric Co. subsidiary and China-based A-Power Energy Generation Systems Ltd. on Monday said they signed two letters of intent, one for a supply deal and a second for a joint venture partnership.
Shares of A-Power jumped $1.01, or 20.6 percent, to $5.91 in morning trading.
Under the supply agreement, GE Drivetrain Technologies will provide A-Power with more than 900 2.7 megawatt wind turbine gearboxes starting in 2010.
The companies intend to establish a joint venture partnership for a wind turbine gearbox assembly plant that will be majority owned by GE Drivetrain, as it tries to expand into global markets, and that will capitalize on A-Power's local market knowledge.
GE said China's initiative to increase wind energy output from one gigawatt in 2005 to 30 gigawatts by 2020 will serve as the basis for future investments by GE Drivetrain Technologies in its supply chain and advanced wind turbine products.