Westborough, Massachusetts, United States
American Superconductor Corporation (NASDAQ: AMSC), a leading energy technologies company, announced today the signing of a strategic business alliance with the Shanghai Electric Cable Research Institute (SECRI). SECRI is the leading research, development and standardization institution for China's wire and cable industry and is one of two centers that test and certify power cables for China. This new alliance will develop and promote the use of high temperature superconductor (HTS) power cables in China to help transmit and distribute increasing quantities of electric power needed to support the growing Chinese economy.
Under the terms of the business alliance, AMSC(TM) will be the preferred supplier of HTS wire to SECRI and the recommended preferred HTS wire supplier to its cable manufacturing licensees for all future superconductor cables. In addition, AMSC will provide consulting services to SECRI for its development of HTS power cable systems. SECRI will also help introduce AMSC's D-VAR(R) power grid solutions to key decision makers throughout China.
SECRI plans to develop and certify HTS power cable systems for use by its constituent members, which are power cable manufacturers throughout China. As a first step toward this objective, SECRI will manufacture and test in its advanced facilities a 30-meter-long, 110,000 volt prototype transmission voltage HTS power cable utilizing AMSC's HTS wire. The next step is an installation of HTS cables in the power grid, most likely in Shanghai.
"We are extremely pleased that SECRI has selected American Superconductor as its partner for the advancement of HTS technology in China," said Greg Yurek, chief executive officer and founder, American Superconductor. "SECRI has several major roles in the Chinese cable industry. It provides testing and certification of power cables and is a leader in advanced cable designs and technologies. We see this agreement as the path to near-term adoption of HTS products in the expanding Chinese energy market."
"East Asia faces the dilemma of rapidly growing electricity demand and an antiquated, over-utilized, under-invested power grid," said Subramanian Jayaraman, Energy Analyst for Frost & Sullivan. "China alone accounted for close to 41% of the world's energy growth in 2004. This rapid growth in demand in China is expected to continue for the near term and, as a result, new and radical solutions must be examined. It is important that the Chinese government is taking the necessary steps by introducing reforms to address this issue. New technologies such as the high temperature superconductors manufactured by American Superconductor offer a very promising solution to East Asia's growing grid problems. While technologies like composite conductors and FACTS devices such as D-VAR are vital for improving the grid, HTS technology is the best bet for the future in reducing losses, improving capacity margins and also improving the reliability of the entire grid."
About Shanghai Electric Cable Research Institute
Shanghai Electric Cable Research Institute (SECRI) was established in 1957 under the ministry of the Machine Building Industry as a center for scientific research, design, testing, information and trade affairs of the China Wire and Cable Industry. In 1999, SECRI was transformed into a Scientific and Technological enterprise under the State owned Assets Commission of Shanghai. Principle activities include R&D and processing of conductors and cables for High and Extra High Voltage, varieties of electrical installations and equipment for wires and cables, communication and optical fiber cables, and the development and enactment of the wire and cable standards in China. The Testing and Inspection Station for Cable & Wire (TICW) is recognized and accredited by international standards institutions worldwide, facilitating the international exchange and acceptance of product-safety test results among participating institutes. SECRI is also involved in the design and manufacture of specialized cable machinery and design and contracting of cable factory projects.
About American Superconductor Corporation (NASDAQ:AMSC)
AMSC is the world's principal vendor of high temperature superconductor (HTS) wire and large rotating superconductor machinery, and it is a world-leading supplier of dynamic reactive power grid stabilization products. AMSC's HTS wire and power electronic converters are at the core of a broad range of new electricity transmission and distribution, transportation, medical and industrial processing applications, including dynamic reactive power grid stabilization solutions, large ship propulsion motors and generators, smart, controllable, superconductor power cables and advanced defense systems. The company's products are supported by hundreds of patents and licenses covering technologies fundamental to Revolutionizing the Way the World Uses Electricity(R). More information is available at www.amsuper.com.
American Superconductor and design, Revolutionizing the Way the World Uses Electricity, AMSC, Powered by AMSC, SuperVAR, D-VAR, DVC, PQ-IVR and PowerModule are trademarks or registered trademarks of American Superconductor Corporation.
Any statements in this release about future expectations, plans and prospects for the Company, including those regarding market demand and AMSC's expected growth in China, and other statements containing the words "believes," "anticipates," "plans," "expects," "will" and similar expressions, constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. There are a number of important factors that could cause actual results to differ materially from those indicated by such forward-looking statements. Such factors include: uncertainties regarding the Company's ability to obtain anticipated funding from corporate and government contracts, to successfully develop, manufacture and market commercial products, and to secure anticipated orders; the risk that strategic alliances and other contracts may be terminated; the risk that certain technologies utilized by the Company will infringe intellectual property rights of others; the competition encountered by the Company, including several large Japanese companies. Reference is made to these and other factors discussed in the "Management's Discussion and Analysis of Financial Condition and Results of Operation" section of the Company's most recent quarterly or annual report filed with the Securities and Exchange Commission. In addition, the forward-looking statements included in this press release represent the Company's views as of the date of this release. While the Company anticipates that subsequent events and developments may cause the Company's views to change, the Company specifically disclaims any obligation to update these forward-looking statements. These forward-looking statements should not be relied upon as representing the Company's views as of any date subsequent to the date this press release is issued.
CONTACT: Media American Superconductor Rick Sheehy 508-621-4454 news@amsuper.com or Investors American Superconductor Jason Fredette 508-621-4177 investor@amsuper.com
CONTACT: Media American Superconductor Rick Sheehy 508-621-4454 news@amsuper.com or Investors American Superconductor Jason Fredette 508-621-4177 investor@amsuper.com, ,
Source: Business Wire (Business Wire India)