Sunpower Group bags two contracts worth over 76m yuan

MAINBOARD-LISTED Sunpower Group has secured manufacturing and services orders worth over 76 million yuan (S$15.3 million) from two repeat customers.

Both projects are expected to be completed in 2021 and have a positive impact on the group's financial performance in FY2020 and FY2021, said Sunpower in a statement on Monday.

Under its new contract with China-based Qixiang Tenda, which is in the field of propane dehydrogenation (PDH) in the petrochemical industry, Sunpower will provide heat exchangers for Qixiang Tengda's 700,000 tonne per year PDH plant.

The other new tender with Yangnong Chemical Group involves the engineering, procurement and construction of a demountable elevated flare system for Phase 1 of Yangnong's Carbon 3 industry project. In particular, the core equipment for the flare system, including the flare tip and integrated pilot light, will be designed and manufactured by Sunpower.

The group did not provide the individual value of each project.

"We are pleased to again cooperate with Qixiang Tengda and Yangnong Chemical Group. The order wins underscore our customers' recognition of Sunpower's strong technological capabilities and expertise," said Guo Hongxin, executive chairman of Sunpower.

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He noted that the group will also continue to expand its green investment (GI) business. With a portfolio of eight projects in operation, one under trial production, three under construction and a pipeline of projects under evaluation, the group is on track to build a "sizeable and valuable" GI asset portfolio by leveraging on the "enormous potential" of its GI business segment.

To date, Sunpower has invested and committed approximately 1.7 billion yuan in project equity and is working towards its investment target of 2.5 billion yuan in project equity by 2021.

Shares of Sunpower closed down 0.5 Singapore cents to 52.5 cents on Monday.