Release time : 2015-06-11 10:49:55
Xiangtan Electrical Manufacturing Co., Ltd., a Chinese partner of US- based Timken Company, announced has recently gained an Ceramic Bearings order of wind power generation sets worth roughly CNY 313 million.
The deal is expected to enable the wind energy sector of Xiangtan Electrical to achieve a stable growth and help boost its 2009 financial results since the Needle roller Bearings order needs to be fulfilled before October 2009.
The wind turbine manufacturer announced on September 4 that its controlling subsidiary inked a contract with Inner Mongolia Datang International Zhuozi Wind Power Co., Ltd.
Datang International Zhuozi Wind is under the wing of Datang International Power Generation Co., Ltd.,one of the country's leading power generation companies. It will be supplied with directly-driven and permanently magnetic generation sets, according to the contract.
Since the beginning of this year, Xiangtan Electrical has gained six orders worth CNY 1.982 billion in total, compared with roughly CNY 1.1 billion orders in the full year of 2007.
All the orders will be fulfilled before the end of 2009, and the value of some single orders reaches CNY 618 million or even CNY 340 million. In 2009, the company is predicted to make money from its wind energy business, where it is currently losing money though.
In the first half of this year, the company incurred a decline due to the snowstorms and the constantly surging prices of such materials as steel products, copper plates, and copper wires.
Major revenues slipped 0.90 percent year on year to CNY 1.24171 billion. Net profits amounted to CNY 13.77 million, plunging 46.5 percent from a year earlier. Earnings per share (EPS) stood at CNY 0.06 with a year-on-year slump of 45.45 percent.
Notably, the Shanghai-listed company inked an agreement on December 10, 2007 with US-based Timken to join hands when expanding in the Chinese wind energy market.
The US-based company, a world-known Skateboard Bearings manufacturer, will create a joint venture with Xiangtan Electric in the central Chinese province of Hunan through its Hong Kong arm.
The venture will register USD 13 million in capital, including USD 10.4 million from Timken's Hong Kong unit and USD 2.6 million from its Chinese partner, earlier reports said.
It will reportedly build a USD 38 million plant, scheduled for construction commencement in 2008, to manufacture ultra- large-bore Needle roller Bearings for main rotor shafts of multi-megawatt wind turbines for the Chinese wind energy market.
Earlier, the Chinese government has set a goal that 2020, 15 percent of the country's energy mix would come from the renewable energy and wind energy would generate electricity of 30 million kilowatts a year.