China Industry: Jun. 11

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Jun. 11 – This is a regular series of relevant industry news from around China.

Solar power
Shi Lishan, vice director of the National Energy Administration’s Renewable Energy Department, said that the country will implement a tariff of RMB1.09 per kWh for solar power in a bid to make this type of renewable energy more competitive.

China Resources Power Holdings has been granted government approval to establish wind farms in Gansu and Guangdong Provinces. The Gansu-based Qiaowan Phase I Wind Farm will have an installed capacity of 201 MW and will start operation in 2010. On the other hand, Guangdong-based Dahao Wind Farm will have an installed capacity of 20 MW and will start operation this year.

Chinese photovoltaic (PV) product maker Yingli Green Energy Holding Company said that its PV modules will be installed by German S.A.G.Solarstrom in a 13 MW plant in the Czech Republic.

Chinese PV products manufacturer,Trina Solar, said it would set-up a warehouse in the port of Oakland. The move is aimed at expanding and strengthening the company’s distribution network in North America, where the demand for PV products is expected to grow given the U.S. campaign for a green economy to secure energy independence and create jobs.

The warehouse will start operation by the end of the month. It is strategically located in California, which accounted for 530 MW of the estimated 800 MW grid-connected PV power capacity of the whole United States.

Hui Tong Credit Guaranty and Taiwanese Nanowin Technology have entered into an agreement to pour some US$150 million in a solar project in Panzhihua City, Sichuan Province. The project includes building a copper indium/gallium selenide thin-film solar cell manufacturing line and PV station.

Air transport
Air Macau, an air carrier which is 51 percent owned by Air China will obtain government worth RMB431.2 million.

China Eastern Airlines Corporation and state-owned Assets Supervision and Administration Commission of Yunnan Provincial People’s Government will establish a joint venture with the air carrier owning 65 percent of the newly formed alliance.

China Southern Airlines and Henan Province government have inked a strategic agreement under the terms of which the air carrier will add to the transportation capacity of the province and expand its network there with additional flights.

According to Taiwanese Civil Aeronautics Administration, regular flights to China will be initiated in July. Taiwan-based China Airlines, Mandarin Airlines, EVA Airways and TransAsia Airways will operate half the flights between the two countries. The remainder of the 270 flights will be served by Chinese companies.

Russia-based Ural Airlines plans to initiate a direct flight from Yekaterinburg to Beijing by June 15 for the Shanghai Cooperation Organization summit.

Shenzhen Airlines inked an agreement with the Wuxi municipal government to include 11 new airplanes at the company’s Wuxi base in the next three years. Through this contract, Shenzhen Airlines will boost the number of aircraft in its Wuxi base to 15. The air carrier will also increase its flights from Wuxi to Guangzhou and to Beijing to one daily. Freight routes from Wuxi to Osaka, Japan, will also be initiated as well as passenger flights to Singapore.

Carlsberg A/S said it had signed a distribution contract with China Southern Airlines to serve the Danish brewer’s brand Carlsberg Chill on its flights. No financial details were available. Carlsberg beat rival brand Budweiser of Belgian Inbev and Chinese beer, Tsingtao for the contract. The Danish group’s premium brand will be the only beer served on China Southern’s international flights as well as in its first and business class cabins for domestic flights.

In addition, it will be one of the two brands served in its economy class domestic routes. The deal includes 20 cities in four major regions served by China Southern.

Malaysian air carrier AirAsia will launch flights from Kuala Lumpur to Chengdu and Xi’an, China, beginning in the second half of the year. Routes from Thailand to Shenzhen, Guangzhou and Hangzhou will also be initiated.

Senior executive of China Southern Airlines disclosed that the company will delay the delivery of 10 airplanes by a year due to the global recession.

Only two of the six non-stop routes between China and the United States approved in 2007 are still up now; the Atlanta–Shanghai flight operated by Delta Air Lines and the Newark-Shanghai route operated by Continental Airlines. Northwest Airlines has postponed its Detroit– Shanghai route. American Airlines has decided to begin its Chicago– Beijing route in 2010. United Airlines has also postponed its San Francisco-Guangzhou route.

China Southern Airlines Company will initiate a route between Dhaka, Bangladesh, and Guangzhou. Initially, the company will operate three flights a week.

According to industry insiders, China Eastern Airlines and Shanghai Airlines plan to merge; temporarily suspending trading of their shares.

Wind power
China plans to establish a 30 MW test wind power station in Jiangsu Province in the second half of 2009. The government plans to boost the project’s power to 150MW by 2010. The National Development and Reform Commission intends to build six 10,000 MW wind power farms in Jiangsu and other provinces. China Longyuan Electric Power Group has been appointed to carry out the Jiangsu-based project.

The deputy director of the Department for New and Renewable Energy at the National Energy Administration, Shi Lishan, stated that China aims to boost total installed capacity of wind power to 30 million Kw by the end of 2010.

Tianjin Xinmao Xinfeng Energy, a subsidiary of Tianjin Xinmao Science & Technology, will establish a wind farm in Ganhekou, Gansu. The wind farm will have 200 MW of installed capacity and will be built in collaboration with Gansu Huineng New Energy.

This industry report brief is courtesy of Aii Data Processing.