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Sunpower secures contract with Fujian Billion Petrochemicals worth over 100m yuan

MAINBOARD-LISTED Sunpower Group has bagged a deal to provide equipment for a project by Fujian Billion Petrochemicals, under a manufacturing and services contract disclosed on Monday morning.

The deal, valued at more than 100 million yuan (S$19.9 million), will see Sunpower deliver oxidation reactor condensers and distillation towers for a purified terephthalic acid development that has an annual production capacity of 2.5 million tonnes.

The contract is expected to positively impact the group's performance from FY2018 to FY2020, with equipment delivery to be done by 2020, according to Sunpower.

Guo Hong Xin, executive chairman of Sunpower, said in a media statement that "our strength in the (manufacturing and services) segment will complement the rapid growth of our GI (green investments) business, which the group views as its primary value creator and growth driver for the long term".

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He added: "Sunpower has seven GI projects in operation to date and will progressively materialise its robust pipeline of projects under evaluation to establish a sizeable and valuable portfolio of projects that will deliver long-term, high-quality recurring income and cash flows for the group in the coming years."

Sunpower last ended lower by 2.5 Singapore cents, or 6.41 per cent, at S$0.365 on Friday.