A relative newcomer to wind turbine manufacture in China, A-Power Energy Generation Systems, last month completed the first phase of its turbine production facility in Shenyang and announced plans for another factory in Bayan Nur, Inner Mongolia. It also expanded its wind turbine licence agreement with Germany's Fuhrländer, allowing it to produce the company's range of turbines from 600 kW to 2.7 MW in addition to the 2.5 MW machine already agreed upon. The Fuhrländer deal provides for a joint component sourcing program in Europe and China and an expanded training program for A-Power's staff at Fuhrländer's facilities in Germany. "We are very impressed by the speed at which A-Power constructed the initial phase of its wind turbine production facility and the success they are having sourcing components," says the German firm's Joachim Fuhrländer. That initial phase is a 28,000 square-metre production facility with an annual capacity for 300 2.5 MW and 420 750 kW turbines. "Based on ongoing discussions with potential customers, we expect orders will quickly exceed the capacity of our new facility," says A-Power's Jinxiang Lu. "As a result, we have already laid the foundation for phase two of our wind turbine production facility, which, when completed, will increase A-Power's wind turbine production capacity by another 30%." The company, formerly Chardon South China Acquisition Corporation (Windpower Monthly, March 2008), hopes to start the $10 million phase-two construction in late 2009, with a view to completing it within four months, bringing annual capacity at the Shenyang plant to 400 2.5 MW and 550 750 kW units. A further factory, with annual manufacturing capacity for 800 MW, is being built in Inner Mongolia thanks to an agreement with the Bayan Nur city government. This will again turn out 2.5 MW and 750 kW machines, although A-Power has plans to produce 1.5 MW turbines at the facility eventually. Under the deal, the city government is giving A-Power tax breaks and will co-ordinate the sales efforts for A-Power's turbines in Bayan Nur and surrounding areas.