Sunpower Group said on Wednesday it obtained a 34.5 million yuan (S$6.95 million or US$5.14 million) manufacturing and services (M&S) contract from East China Engineering Science and Technology, or ECEC.
Under the contract, Sunpower will provide equipment and construction installation services for the flare gas system for phase one of the Yulin Recycling Economy Coal Comprehensive Utilization Project, which is one of the largest coal chemical projects globally, it said in a filing to SGX after the market close on Wednesday.
Shenzhen-listed ECEC is a subsidiary of large-scale China state-owned enterprise China National Chemical Engineering Group (CNCEC), the filing said.
“This contract win is a strong testament and validation of our track record and technological expertise in flare gas system,” Guo Hongxin, executive chairman of Sunpower, said in the statement. “Moreover, Sunpower is the only officially appointed supplier of flare systems for Shell in Asia and is one of only three such suppliers for Shell in the world.”
The contract is expected to positively impact Sunpower’s performance in the current financial year, the filing said.
But Guo added that while Sunpower’s M&S business remained “stable and resilient,” green investments (GI) were expected to be the company’s growth driver, offering long-term recurring income and cash flows.
He said the company had a current portfolio of seven operating GI projects, with another five under construction and/or in the design phase and a “robust pipeline” of projects Sunpower is evaluating.
“With a target to invest 2.5 billion yuan in equity by 2021, Sunpower will continue to build a sizeable GI portfolio to maximise GI’s potential as value creator and growth driver,” Guo said.