Sunpower Group clinches $52.9 million contract in China

Mainboard-listed Sunpower Group has secured a contract with BaoTa Petrochemical Group for the first time.

The China-based heat transfer technology specialist recently clinched a 253.5 million yuan (S$52.9 million) engineering procurement and construction contract through its subsidiary - Jiangsu Sunpower Technology Co. - with Xinjiang Kuishan Baota Petrochemical Co.

The contract includes works to integrate sulphur recovery and flare systems into BaoTa Group's Xinjiang Kuishan Petrochemical (XKP) base, said Sunpower Group in a statement.

The XKP base is a large-scale oil-coal-chemical-power-heat integrated project with a total construction value of 29.8 billion yuan. Construction of this base is expected to be completed by 2015.

The supply of sulphur recovery systems is valued at 206 million yuan and is expected to be delivered by end 2015.

Sunpower also expects the contract to have a positive impact on its 2014 and 2015 financial results.

Chairman of Sunpower Guo Hongxin said: "This contract win forms part of the development of a large petrochemical industry cluster project in Xinjiang.

"In line with China's objective to reduce total sulphur dioxide emissions by 8 per cent per unit of industrial added value within the 12th five-year plan of petrochemical and chemical industries, (Sunpower) believes that it is well-equipped to capture a higher market demand for its sulphur recovery systems in various industrial sectors."

This contract also marks the largest one won by Sunpower's energy saving and environmental protection systems business segments to date.

Sunpower shares closed up 1.25 per cent to 16.2 cents.