May 25 – This is a regular series of relevant industry news from around China.

Solar power

U.S. solar power plants developer AES Solar Energy has signed a supply deal with Chinese photovoltaic (PV) product manufacturer Yingli Green Energy. Under the three-year exclusive supplier framework agreement, Yingly Green Energy will deliver its polycrystalline PV modules to AES Solar for the latter’s solar projects. AES Solar Energy, a joint venture between global power company AES Corp and U.S. private equity firm Riverstone Holdings LLC, develops and operates utility-scale solar PV projects worldwide.

Photovoltaic modules maker Suntech Power Holdings announced yesterday that it will build a 1.5 MW solar power system in Huaian City, Jiangsu Province, eastern China.

Suntech Energy Engineering, the systems integration team of the company, will design and install the system for state-owned investor into power projects Jiangsu Guoxin Asset Management Group.

The solar array will be installed on the roof of buildings owned by a subsidiary of the latter. The installation, spanning 19,000 square meters, is expected to be completed by October 2009. The project will be eligible to receive China’s recently announced subsidy for roof top solar systems.

Air transport

Hong Kong International Airport saw passenger throughput volume of 4.2 million person times in April, 4.1 percent more than in the same period last year. Air Cargo throughput volume was 257,000 tons, 19.8 percent less than in April 2008. Air traffic flow dropped by 3.7 percent to 24,090 jet times.

The first Airbus A320 assembled in China has successfully completed its maiden flight. Airbus Delivery Center in Tianjin will deliver the airplane to Dragon Aviation Leasing. It will be operated by Sichuan Airlines.

The Tianjin municipal government, Hainan Airlines and its parent company, HNA Group, will establish a regional carrier in June. It will be called Tianjin Aviation and will have a registered capital of RMB1.3 billion.

Korean Airlines budget subsidiary Jin Air plans to start air routes to China and Thailand in a bid to boost its short- and medium-haul business network.

Russian Ural Airlines plans to initiate flights between Yekaterinburg, Russia, and Beijing. The route will be operated by Airbus A320 airplane. Ural Airlines has received regulatory approval to initiate flights between Ekaterinburg, Russia, and Beijing.

The National Development and Reform Commission has increased the price of domestic jet fuel by 11 percent to RMB4,450 per ton. According to industry insiders, the three biggest domestic air carriers will have to pay RMB2 billion more for fuel in 2009. Shanghai Airlines may lose RMB190 million in profit while Hainan Airlines may lose RMB230 million.

Wind power

German engineering group Siemens will pour some EUR60 million into a new rotor blade and nacelle production facility to be established in Lingang New City in Shanghai. The production site will span 180,000 square meters and is expected to become operational in 2010. Siemens will initially produce blades for 2.3 MW and 3.6 MW wind turbine plants. The initial production capacity of the new facility is planned at 500 MW annually.

This industry report brief is courtesy of Aii Data Processing.