China Industry: Jul. 13

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Jul. 13 – This is a regular series of relevant industry news from around China.

Solar power

Enfinity NV, LDK Solar and state-owned China Guangdong Nuclear Power Holdings will install the first 10 MW of a 500 MW solar photovoltaic (PV) project in Dunhuang, after winning over 13 other bids. The RMB200 million project’s annual output will be 16.37 million kWh.

Taiwan-based thin-film solar cell manufacturer NexPower Technology plans to allocate some TWD90 billion over the next five years for the establishment of seven thin-film cell plants. With this move, the company will boost its total capacity to one gigawatt by 2014.

PV cells and modules maker Suntech Power Holdings said that its chief operating officer Johnson Chiang had resigned, effective July 3. Guangchun Zhang, Suntech’s vice president of manufacturing technology and quality, will take over the management of all crystalline silicon PV manufacturing operations in China.

Dr. Zhengrong Shi, the company’s chairman and CEO, will temporarily oversee the management of the Shanghai thin film plant, KSL Kuttler and BIPV manufacturing operations at Suntech Japan.

Chinese solar wafer maker Tianwei New Energy Wafer has reduced the volume of polysilicon supply deal with its supplier U.S. Hoku Materials to US$468 million from US$511 million. Moreover, Hoku Materials, a subsidiary of U.S. clean energy technologies company Hoku Scientific said yesterday that besides the 8 percent reduction of the two ten-year agreements the companies also agreed to change Hoku’s near-term shipping obligations.

Tianwei has eliminated the condition that first polysilicon shipment should be made before March 2010 and agreed to pay in advance US$5 million of the remaining US$7 million prepayments. The company will pay the remaining US$2 million to Hoku, when it starts supplies in 2010. By the end of June the Chinese company had paid Hoku a total US$79 million in prepayments for future deliveries.

Tianwei is the second customer to renegotiate the volume of a supply deal with Hoku. In April this year, China-based monocrystalline ingots maker Wealthy Rise International, owned by Solargiga Energy Holdings reduced the volume of its order to US$136 million from US$455 million.

Chinese multicrystalline solar wafers maker LDK Solar has entered into a framework agreement with the local government of Qinghai Province, under which the company will build a photovoltaic power station, a 500 MW per year module project, and install solar rooftops.

China Eastern Airlines Corporation has entered into an agreement with third-party payment company Tenpay, under which the two companies will jointly offer a ticket platform and travel services.

Air transport

Zhou Chi, chairman of Shanghai Airlines said that the company will become a wholly-owned subsidiary of China Eastern Airlines. Chi added, that Shanghai Airlines will keep its brand and existing routes.

China Eastern Airlines has secured RMB7 billion by selling new shares to its parent China Eastern Air Holdings in a bid to bolster its balance sheet.

Frederico Curado, CEO of Brazilian jet maker Empresa Brasileira de Aeronautica said that the company considers closing its Harbin, Heilongjiang Province, manufacturing plant if it continues to fail to attract new customers.

Japan Airlines Corporation has decided to stop flying to Dalian and Hangzhou, China.

Indonesia-based stated-owned air carrier PT Merpati Nusantara Airlines has cancelled a US$232 million aircraft delivery deal which was signed in 2006 with Chinese Xi’an Aircraft Industry and has started leasing jets from other firms.

Malaysian AirAsia Berhad will begin flying between the Malaysian Island Penang and Hong Kong, starting July 31.

U.S. aircraft maker Boeing and Air China announced that Air China will implement Boeing’s Airplane Health Management system to monitor the in-flight condition of its 737 fleet. The deal covers a total of 117 Air China 737s that are in service and on order.

Cathay Pacific Airways said it would initiate direct flights between Bahrain and Hong Kong from August 1.

Russian air carrier Ural Airlines has started flying between Yekaterinburg, Russia and Beijing. Initially, the flight will be operated once a week.

Shenzhen Airlines will inaugurate its Taiwan office in August this year. The air carrier will boost the number of flights to Taipei to seven a week.

China Eastern Airlines has entered into an agreement with third-party payment company Tenpay, under which the two companies will jointly offer a ticket platform and travel services.

Hainan Airlines plans to initiate a direct route between Haikou, Hainan Province, and Hanoi, Vietnam.

Singapore Airlines has started an Airbus A380-operated daily service between Singapore and Hong Kong.

Wind power

Danish wind-turbine maker Vestas Wind Systems said it will supply 17 units of its V80-2.0 MW turbine for a wind farm project on the Chinese island of Pingtan. No financial details were available. The order is Vestas’s first from Fujian Wind Energy Company, a subsidiary of Fujian Investment Group – the investment arm of the Fujian authorities. The contract provides for supply and commissioning of the machinery, the VestasOnline Business Scada system, and a two-year service and maintenance agreement. Delivery is planned for the fourth quarter of 2009.

The local government of Jiuquan city, Gansu Province, announced it will build a 10 million KW wind farm. The RMB120 billion project will have a generation capacity of 5.16 million KW by the end of 2010 and 20 million KW by 2020.

China WindPower has entered into an exclusive agreement with Fuxin Municipal Government, Liaoning Province, to establish wind power projects with a combined installed capacity of 500 MW.

Suzlon Energy Limited, a subsidiary of India-based Suzlon Energy Limited, has inked an agreement with Datang Power Generation for the delivery of 39 wind turbines, each having 1.25 MW of nominal power.

This industry report brief is courtesy of Aii Data Processing.