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Sunpower wins $8.7 mil contract from repeat customer

PC Lee

SINGAPORE (May 23): Sunpower Group, the environmental protection solutions specialist, has signed a RMB43.56 million ($8.7 million) contract with repeat customer Zhejiang Petrochemical Co.

Sunpower will provide high-efficiency heat exchangers for one of China’s largest domestic atmospheric and vacuum pressure units with an annual capacity of 10 million tons, which is part of Phase 2 of Zhejiang Petrochemical’s refinery and chemical integration project.

The project is part of China’s 13th Five-Year National Petroleum and Chemical Plan.

Sunpower started its partnership with Zhengjiang Petrochemical in 2017 when it supplied heat exchangers and coolers in Phase 1 of the project. With delivery at the end of FY2019, the group’s FY2019 and FY2020 results is expected to be positively impacted.

Guo Hongxin, Executive Chairman of Sunpower, says, “We are pleased to work with Zhejiang Petrochemical again after we started our partnership in 2017. This attests to the group’s proven ability to supply superior high-quality equipment and solutions for large-scale installations and projects as well as the strength of our partnerships with our customers. Our M&S (manufacturing and services) customers, of which 70% are repeat customers, has provided a resilient and stable business for us.”

“In addition, we remain focused on our Green Investments (GI) business -- anti-pollution investment projects -- and are well-positioned to build a sizeable and valuable portfolio of GI assets as the group’s value creator and growth driver. We are pleased to see GI revenue grow 129% y-o-y in 1Q19 to account for 35% of group revenue and 65% of group EBITDA. The group’s quality of earnings and cash flow have been significantly enhanced by the long-term, recurring and high-quality contributions from GI.”

Shares in Sunpower closed 0.31 cents lower at 44 cents on Thursday.