Sunpower Group clinces RMB85.1m contract with Shenhua Group

To supply ZLD tech, EPC services.

Mainboard-listed Sunpower Group Ltd. (Sunpower), a China-based heat transfer technology specialist engaged in the design, R&D and manufacture of energy-efficient and environmental protection equipment for diverse industries, has recently been awarded a contract worth RMB85.1 million between its wholly-owned subsidiary, Jiangsu Sunpower Technology Co., Ltd. (Sunpower Technology) and China Shenhua Coal to Liquid And Chemical Co., Ltd., a member of Shenhua Group, one of the largest coal conglomerates in China.

The contract includes the Zero Liquid Discharge (ZLD) technique and key equipment for salty wastewater treatment and flare system Engineering, Procurement and Construction (EPC) service for Methanol downstream processing project, which are located in Yushen Industrial Park, Yulin City, Shaanxi Province.

The ZLD technique and key equipment are valued at RMB37.9 million and the flare system EPC service is valued at RMB47.2 million, and both of them are expected to be delivered by the end of 2014. This contract will have a positive impact on the Group’s FY2013 and FY2014 results. Save for their respective shareholdings in the Group, none of the directors or controlling shareholders of the Group has any interest, direct or indirect, in the contract.

The ZLD project marks the first time that Sunpower leverages on its know-how for ZLD. The Group strengthens the R&D of new technology, and develops the Low Temperature Energy ZLD (LTE-ZLD) technology which combines efficient heat transmission and heat recovery technologies to lower the operation cost of salty wastewater treatment.

“Securing of the contract underscores the long-standing relationship between Sunpower and Shenhua Group, one of the largest coal players in China. As China increases its focus to improve energy efficiency and strengthen its efforts to promote environmental protection in the environment and water industry, the Group could expect to benefit from the demand for the environmental friendly business," said Mr. Guo Hongxin, Chairman of Sunpower.

With China developing its coal industry under the 12th Five-Year Plan, it is promoting the growth of large scale coal companies with the total provincial investment of this sector currently exceeding RMB2 trillion.