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United Power Technology AG: Expansion of the production site reaches final stage of construction and substantiates growth strategy

DGAP-News: United Power Technology AG / Key word(s): Miscellaneous
United Power Technology AG: Expansion of the production site reaches
final stage of construction and substantiates growth strategy

17.10.2014 / 08:42

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United Power Technology AG: Expansion of the production site reaches final
stage of construction and substantiates growth strategy
- Investment amounts to about 19 million Euros for 2014

- New production lines should serve as a basis for a broadened product
portfolio

- Completion of the additional factory space expected for November 2014

Eschborn, Germany, October 17, 2014 - United Power Technology AG (United
Power), one of the leading manufacturers of engine-driven power equipment
in China, has reached the final stages of completing the buildings of the
phase 3 expansion of its production site in Gaoqi Industrial Park. In total
the company will add four new four-story factory buildings with a total
usable factory space of more than 45,000 sqm and one new dormitory to the
current factory space. The new buildings are intended to be equipped with
modern production lines, which will further increase the efficiency and the
production capacities of United Power. The completion of the buildings of
the third phase expansion phase is scheduled according to plan for November
2014.

The expansion of the production site in Gaoqi Industrial Park is part of an
investment plan that was decided on in 2012 but had to be postponed due to
adverse market conditions in the industry for engine-driven power
equipment. The total investment budget for the expansion project amounts to
about 36 million Euros in 2014, of which 90 per cent are designated for the
property and the equipment. However, due to the currently on-going
difficult market environment, United Power will not fully utilize the
entire budget. The investments will likely not exceed 19 million Euros this
year as United Power carefully monitors the market environment to decide on
the timing for investments into the new production lines. However, in the
meantime, given the prime location of the production facilities in Gaoqi
Industrial Park, not utilized factory space may be rented to third-party
companies providing an attractive additional income stream. The first
production lines will start the operations during the year of 2015.

Xu Wu, Chairman of the Management Board of United Power is delighted about
the new perspectives: "We are proud to see that the construction of the