China Power Equipment triples capacity at new plant for energy saving transformers

Source: China Power Equipment, Inc 

China Power Equipment, Inc. (OTC BB:CPQQ.ob), the manufacturer of a new generation of energy saving electric transformers and transformer cores in the People's Republic of China, has reported that it is now running regular production at its new plant that manufactures amorphous alloy transformer cores. The new plant is located in the new Xi'an Jingwei Industrial Zone in Jingyang near Xi'an. 

Mr. Yongxing (Henry) Song, Chairman and Chief Executive Officer of China Power, said, "We have passed all government safety inspections and have completed our pre-production testing of our new production line. As a result, we have started our regular production and are delivering our high-quality amorphous alloy transformer cores to our customers from the new plant. 

"Because we have created the optimum balance between industrial automation and hand work, the new plant is yielding high product quality, high production efficiency, and should result in lower production costs per unit."
"Demand for amorphous alloy transformer products in China continues to increase rapidly as a result of the government's determination to increase energy efficiency and reduce emissions. Our new plant further qualifies China Power as a reliable high-volume supplier of high-quality amorphous alloy cores. We believe the demand for our additional capacity is real and look forward to higher sales volumes." 

With a total internal capacity of 6,500 metric tons each year, China Power Equipment has become the number 2 amorphous alloy core supplier in the market, measured by the annual production capacity for amorphous alloy transformer cores. 

The new plant is a state-of-the-art facility that uses modular programmable logic controller technology, human-machine interface engineering, highly precise mechanical transmission systems, and other advanced technologies. The production phase in which the delicate amorphous alloy strip is cut in an extended sequence of longer and longer precision lengths is highly automated, reliable, and very productive. 

The dipping phase in core production uses a new automated system that increases production efficiency. A new annealing process for cores that is computer-controlled dramatically reduces the energy consumed in the process and shortens the time required for the annealed cores to cool before they continue down the production line. 

The new plant adds 5,000 metric tons of annual capacity for amorphous alloy cores, bringing China Power's total internal capacity to 6,500 metric tons per year, up 333% from its previous internal capacity of 1,500 metric tons per year. To help fill orders in the last year or so, the Company had used an additional dedicated capacity of 1,000 metric tons that was provided by an associated manufacturer, which China Power may use again, depending on how rapidly the demand increases for amorphous alloy cores. 

The Company continues to produce and deliver cores from its original plant in Xi'an and will gradually shift production to the new plant without any interruption in deliveries to its customers.



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