China Industry: June 2

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Jun. 2 – This is a regular series of relevant industry news from around China.

Air transport
Hainan Airlines booked a loss of RMB1.4 billion for 2008. The company blamed the loss on the high oil prices and decreased demand. Separately, the company also received government aid worth RMB3 billion from the local Hainan Provincial Government and its parent company HNA Group.

Aircraft maintenance services provider China Aircraft Services has opened a 10,000 square meter, HK$400 million airplane maintenance hangar at the Hong Kong International Airport.

Hainan Airlines has initiated flights between Beijing and Dubai in a bid to boost tourism between the two countries. The flights will be operated two times a week. Hainan has selected Sharaf Travel as its general sales agent in the United Arab Emirates and the Gulf.

Solar power
Zhejiang Yuhui Solar, a wholly-owned subsidiary of ReneSola, has inked an agreement to acquire solar cells and module maker Wuxi Jiacheng Solar Energy Technology for RMB118 million in cash.

Lu Yanchang, vice chairman of the China Science and Technology Association, has stated that with its 12 million KW, China ranks fourth worldwide in terms of installed wind power capacity.

The local government in Shanghai has granted approval to China Huadian to begin initial work on two solar power projects with a combined installed capacity of approximately three MWp.

A-Power Energy Generation Systems has named Kin Kwong Mak, chief financial officer (CFO), effective immediately. The company’s acting CFO, John Lin, will assume the position of chief operating officer.

Chinese multicrystalline solar wafers manufacturer LDK Solar announced it had teamed up with an Italian solar systems integrator to develop photovoltaic projects in Italy. Under the deal, LDK Solar will supply solar wafers, while ESPE Srl will provide engineering, procurement, construction services and system integration. The companies plan to develop five MW of PV plants in the southeastern Apulia region in Italy. The construction works on the first project have already kicked off.

A-Power Energy Generation Systems has inked a US$52.8 million contract with Electricity Co. to design, construct, install and test two 18 MW electricity-generation systems using biomass as fuel in Huaian, Jiangsu Province.

Wind power
Spanish wind turbines maker Gamesa Corporacion Tecnologica will establish a joint-venture with the China Guangdong Nuclear Power Group. The JV will be focused on creating wind farms with a combined capacity of 250 MW with the first wind farm to be located in Shandong Province. The construction is expected to begin this year.

This industry report brief is courtesy of Aii Data Processing.