China Industry: May 1

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May 1 – This is a regular series of relevant industry news from around China.

Solar power
Taiwanese Motech Industries booked a net income of TW$48 million for the first quarter of 2009, 82 percentless than last year and the lowest in six years.

Chinese photovoltaic (PV) cells and modules maker Suntech Power Holdings Co. has added Susan Wang to its board of directors. She is the sixth member of the company’s board and the fourth independent director.

Chinese solar cells and modules maker Jetion Holdings Limited booked a pretax profit of US$20 million for 2008 compared with US$4.6 million in 2007. The company’s sales reached US$250.9 million, compared to US$104 million a year earlier.

Air transport
Malaysian AirAsia will start flying between Kuala Lumpur and Taipei on July 1. The company’s budget long-haul affiliate carrier, AirAsia X, will operate the direct flights five times a week.

Eva Airways Corporation will pour some RMB50 million in its 25 percent-owned Chinese air-cargo venture, Shanghai Airlines Cargo International Co. The other participant in the joint venture is Shanghai Airlines Co. With the investment, Eva will compensate the JV’s losses from high fuel prices and decreased cargo demand.

Separately, the Taiwan-based company booked a net profit of TW$199.6 million for the first quarter of 2009, up from a net loss of TWD$16.89 billion a year earlier.

Under an agreement amendment, Taiwan and Italy have added Kaohsiung and Milan as potential destinations in their air services cooperation. Each company will get to name a second air carrier to operate between the two countries. The number of flights may also be increased. China Airlines will be allowed to operate 7 passenger flights and 3 cargo flights per week from the current 3 passenger and 2 cargo routes.

Wind power
Danish wind-turbine maker Vestas Wind Systems A/S said it will supply 58 units of its V52-850 kW turbine for a wind-farm project in China’s Inner Mongolian Autonomous Region. No financial details were available.

The order was placed by Chinese firm Datang (Tongliao) Huolinhe Renewable Power through state-owned National Water Resources & Electric Power Materials & Equipment Co, Ltd. The contract covers the supply of the machinery, the VestasOnline Business Scada solution as well as a two-year service and maintenance agreement. Delivery of the turbines is planned to take place from May to July this year.

A-Power Energy Generation Systems has inked contracts worth US$75.3 million with the subsidiaries of Anhui Wenergy Co. to build two micro-grid electricity-generation systems in Anhui Province based on biomass as the primary fuel. Under the terms of the deal, A-Power will design, assemble, install, test and deliver two 30MW electricity-generation systems using biomass as fuel at Wenergy’s DG plants in Shucheng County and Hanshan County in Anhui Province. The two projects are expected to be completed and commence operation by August 2010.

This industry report brief is courtesy of Aii Data Processing.