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Sunpower announces two China deals worth 543 million yuan

CHINA-BASED energy conservation and renewable energy company Sunpower Group on Monday said that it has entered into an investment agreement with Xingjiang County Government to build and operate a cogeneration facility in the Xinjiang Circular Economy Demonstration Park.

The project involves the construction of boilers, electricity generators and steam distribution pipelines that will be carried out in phases. The details will be finalised according to the approval documents of the authority.

The total investment amount is estimated to be 490 million yuan (S$100.6 million), and will be funded by net proceeds from the convertible bonds issue in March this year, bank loans and internal resources.

Sunpower has been granted the concession right to build and operate the facility to provide steam to the companies operating in the Demonstration Park on an exclusive basis, it said.

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The Demonstration Park is planned to involve deep processing and comprehensive use of coal to develop a circular economy and achieve sustainable development, with an accumulated investment of six billion yuan.

Separately, Sunpower also announced that its wholly owned subsidiary, Jiangsu Sunpower Pressure Vessels Equipment Manufacturing, was awarded a contract worth 53 million yuan from Zhejiang Petrochemical.

The group will provide heat exchangers and coolers for an ethylene glycol facility with an annual capacity of 800,000 tonnes, which is part of the first phase of Zhejiang Petrochemical's refinery and chemical integration project.

The project has been included in China "13th five-year" national petroleum and chemical plan. The products are expected to be delivered by the end of FY2018, and will have a positive impact to the group's FY2018 financial results, it said.