Sunpower subsidiary to invest in steam production joint venture in Suzhou

Annabeth Leow

Published Wed, Dec 8, 2021 · 07:57 PM

MAINBOARD-LISTED industrial steam provider Sunpower Group 5GD : 5GD 0% is investing in a steam-production joint venture in China, which will supply a guaranteed portion of the output on a wholesale basis to a Suzhou-based subsidiary.

The subsidiary, Zhangjiagang Yongxing Thermal Power Co, will take a 28 per cent stake for 16.8 million yuan (S$3.6 million) in the joint-venture company, the group said on Wednesday (Dec 8).

The subsidiary is partnering waste collection company Suzhou Green Enthalpy Thermal Technology Co, which will hold a 42 per cent interest, and municipal-owned Zhangjiagang Water Group Co, with a 30 per cent interest.

The joint-venture company, Suzhou Green Bright Renewable Energy, will produce steam with general solid waste as feedstock, which Sunpower said would help the Yongxing Plant diversify its sources of steam and also meet "strong and rising demand from customers".

In a statement, Sunpower chief executive Ma Ming called the joint venture a natural step in developing the group's green investments (GI) portfolio.

"It is part of our continuing efforts to steer the development of the GI in the direction of further cultivating and enhancing the quality of our GI project portfolio to achieve better-quality growth and boost the investment returns and value of our assets in the long term," he said.