A-Power (APWR) Falling as Schumer Demands US-Built Turbines for West Texas Project
Shares of China-based A-Power Energy (Nasdaq: APWR) have dipped about 3% mid-day following reports that Senator Chuck Schumer is pushing the Obama administration to block the use of economic stimulus funds for a wind farm project in Western Texas.
Prior to the reports, A-Power traded up as much as 4%, but after news hit the wires (just after 2pm ET), the stock moved sharply into negative territory. The stock most recently traded at $10.82.
According to a Reuters report, Schumer's beef with the project is that, although the project would be located in the US, the turbines would be built in China. Schumer said, "I'm all for investing in clean energy, but we should be investing in the United States, not China. While the project is anticipated to generate as many as 3,000 jobs in Shenyang, China ... its job impact in the United States would be roughly one-tenth that amount."
Apparently, Schumer has asked the DoE to deny funding for the project until US-made turbines are agreed to be used.
The market reaction tells the story: A-Power would be out of a large contract if Schumer's requests are upheld.
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