Environmental protection solutions specialist Sunpower has secured a manufacturing and service (M&S) tender worth over RMB150 million ($30.1 million) from China-based SINOPEC Group.
Under the tender, Sunpower will manufacture and supply two types of LNG vaporizers, namely Submerged Combustion Vaporizers (SCV) and seawater Intermediate Fluid Vaporizers (IFV), for SINOPEC’s Large LNG receiving terminal in Shandong province.
Delivery of the contract is expected to be completed by FY21 and have a positive impact on the group’s financial performance in FY20 and FY21.
In addition to Shandong, Sunpower has supplied LNG vaporizers and services to large LNG receiving terminals in other places, including Guangdong, Hainan and Zhejiang.
“We are heartened to further deepen our cooperation with SINOPEC, our long-standing business partner of more than 20 years, and to provide core equipment for its important LNG receiving terminal project. This high-value tender win is a strong vote of confidence in our technological and manufacturing abilities as well as our industry leadership in the field of LNG vaporizers,” says Guo Hongxin, executive chairman of Sunpower.
“In addition, we will continue to expand our GI business which is Sunpower’s value creator and growth driver that generates long-term, high-quality recurring income and cash flows. With a portfolio of 8 projects in operation, 1 under trial production, 3 projects under construction and a robust pipeline of projects under evaluation, the Group is on track to build a sizeable and valuable GI asset portfolio. To date, it has invested and committed approximately RMB1.7 billion in project equity and is advancing steadily towards its investment target of RMB2.5 billion in project equity by 2021,” Guo adds.
Shares in Sunpower closed 0.5 cent lower, or 0.9% down, at 53.5 cents on September 16.
