China Industry: Mar. 17

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Mar. 17 – This is a regular series of relevant industry news from around China.

Solar power
Chinese photovoltaic (PV) cells and modules maker Suntech Power Holdings teamed up with U.S. solar project developer 3rd Rock Systems and Technologies to develop an initial 7.2 MW of solar systems in the United States. The US-based company will be in charge of the project development and will raise financing.

For projects developed under the alliance, Suntech will be both the preferred supplier of solar modules and provide engineering, procurement and construction services through its wholly-owned subsidiary, Suntech Energy Solutions.

According to industry insiders, Chinese multicrystalline solar wafers maker LDK Solar will partner with German solar cells manufacturer Q-cellsin a bid to enter the European solar PV market. Initially, LDK will assess market opportunities as a contractor rather than as an investor.

Air transport
Cathay Pacific Airways booked an attributable loss of HKD8.5 billion in 2008, compared to a profit of HKD7.023 billion in 2007. The company’s turnover increased by 14.9 percent to HKD86.578 billion in 2008. Cathay Pacific blamed the loss on the high fuel prices and the decreased passenger and cargo demand. The company and its subsidiary, Dragonair, carried 25 million passengers in 2008, 7.3 percent more than a year ago. Passenger revenue increased by HKD8.526 billion. Cargo revenue for Cathay Pacific and Dragonair combined rose by HKD2.298 billion while total tonnage carried fell by 1.6 percent to 1,644,785 tons.

Separately, the two companies served 1.81 million passengers in February 2009, 7.4 percent less than in February 2008. The load factor dropped by 1 percent to 76.6 percent. The companies’ cargo and mail volume decreased by 16.7 percent to 100,906 tons.

China Southern Airlines Company will cut its jet fuel surcharges on its service from China to Australia from RMB500 to RMB240.

Shanghai Airlines will postpone the delivery of two or three aircrafts due to government restrictions. Chairman Zhou Chi forecast that the company may become profitable again because of anticipated passenger growth. The company’s net loss is expected to be double the 2007 figure at RMB435 million.

Wind power
The National Development and Reform Commission (NDRC) has approved four renewable energy projects: two hydropower plants and two wind farms with a total capacity of 2,001 MW.
The Luding Hydropower Station in Sichuan province will have four units of 230 MW each. The Dongjing Hydropower plant in Guizhou province will house four units of 220 MW.

Each of the two wind power stations – the Rudong wind farm in Jiangsu and Guyuan wind power station in Hebei – will have an installed capacity of 100.5 MW.

This industry report brief is courtesy of Aii Data Processing.