China Industry: Mar. 4

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Mar. 4 – This is a regular series of relevant industry news from around China.

Solar power
Yunnan Tianda Photovoltaic Co. Ltd, a company of Hubei New Huaguang Info Materials Co. Ltd., has inked three contracts with Xiuzhou New Area’s administration committee and Xiuzhou Industry Park. The company wants to build a solar cell manufacturing plant and a research and development center in that area.

The project is expected to cost RMB300 million. Some RMB50 million will be provided by the company’s shareholders and RMB250 million by banks and other financing channels. At first, the company anticipates to make 100 MW of solar products and upon completion, to boost its production to 200 MW.

Chinese solar energy products and services provider China Technology Development Group Corporation said it had completed the disposal of its non-core business of network security in order to focus on its solar energy projects. The company sold its wholly-owned subsidiary Jingle Technology Co. Ltd., including BHL Networks Technology Co. Ltd. and Beijing BHL Networks Technology Co. Ltd. which are owned by Jingle for HKD200,000.

Guangwei Green New Energy Co. Ltd. plans to build solar cell manufacturing plant in Gaobeidian City, Hebei Province. When completed in September, the factory will be able to make 600 MW of solar cells annually. Guangwei Green’s parent company, Longjitaihe Industry Group Co. Ltd., will invest RMB4.2 billion in the project

Air transport
Shanghai Airlines Co. Ltd. will receive RMB999.9 million government aid from the Shanghai government. Industry insiders have suggested that the sum will be enough for the company to cover its financial needs. Separately, the company has hired Vietnamese Transviet Company to operate three weekly flights between Hanoi and Shanghai, starting March 27. Boeing 737-800 aircraft has been picked to serve the route.

Hainan Airlines Co. Ltd. will invest between RMB15 million and RMB20 million in Shaanxi Province, western China, in the next three to five year, creating 25,000-30,000 jobs and generating RMB10 billion in revenue per year.

Shanghai Airlines Co. Ltd. will get RMB1 billion of capital aid from one of its largest shareholders, Jinjiang International Holdings Co. Ltd., thus cutting its debt-to-equity ratio and improving its liquidity.

French Airbus denied that China had canceled 150 aircraft orders and said that the company is still in discussions.

Wind power
India-based Suzlon Energy Ltd. said that under a pact signed between its Chinese unit, Suzlon Energy (Tianjin) Ltd, and Inner Mongolia North Longyuan Wind Power Corp, Suzlon will deliver 80 wind power turbines to China, of 1.25 MW each, in two lots of 50 MW each in 2010 and 2011. Financial details were not disclosed.

This industry report brief is courtesy of Aii Data Processing.

Correction: March 9, 2009
An earlier version of this article incorrectly stated that Boeing 727-800 planes would be used to fly the Shanghai-Hanoi route.