Sunpower Group said on Thursday that it secured a 59 million yuan manufacturing and services (M&S) contract from Yunnan Coal Chemical Group, its first with the state-owned enterprise in Yunnan.
The contract involves the construction of new desulfurization and denitrification systems which use dry gas control technologies, with services to include design, procurement, construction and commissioning, it said in a filing to SGX after the market close on Thursday.
The project is expected to be completed in 2019, with a positive impact on performance in the 2019 fiscal year, Sunpower said.
The contract is with Yunnan Dawei, a subsidiary of Yunnan Coal Chemical, it said.
Guo Hongxin, executive chairman of Sunpower, said the company was “heartened” to work with Yunnan Coal Chemical.
“The desulfurization and denitrification technology is an integral part of technology package that Sunpower adopts in our Green Investments (GI) business, which allows Sunpower to be capable of achieving emission levels that are well below national levels and even below those of natural gas,” Sunpower said.
“Given the huge market potential driven by China’s accelerating green movement, our GI business has the potential to deliver long-term,
high quality recurring income and cash flows,” Guo said.