On December 28, Sineng Electric (300827.SZ) announced in a momentous ‘Agreement Signing Ceremony’ that it has teamed up with Tongxin County Government, Ningxia and CNNC Rich Energy Corporation to actively respond to the vigorous energy transformation policy of China. Based on the principles of equality, voluntariness and win-win cooperation, it has signed an investment and construction agreement for “10GW inverter production line construction Project” to effectively accelerate the development of western clean energy base and jointly promote the construction of Ningxia Clean Energy Demonstration Park.
According to the agreement, the project is slated to be completed in two phases. In the first phase of the project, an estimated 50 million Chinese yuan will be invested to lease a total area of 4000.75 square meters in the poverty alleviation industrial park development zone of Ningxia. And, 2 inverter and energy storage bidirectional converter production lines will be installed there. It has also been planned to invest another 150 million Chinese yuan to expand the production scale in regard to the production and operation conditions of the first phase and the needs of industrial development in that region. After completion of the first phase of the project, it is expected that it will produce good economic and social benefits in the region with 10GW annual production capacity and value of output will be about 800 million to 1 billion Chinese yuan.
The expansion of the advanced production base not only illustrates the Sineng’s vigorous development strategy, but also it confirms the company’s commitment to China’s energy transformation policy and the development of the northwest clean energy base. The implementation of the project involved in the agreement will undoubtedly help further strengthen the market position of Sineng in the PV inverter industry.
Sineng Electric’s Chairman Wu Qiang, president Victor Duan and associates from Ningxia Autonomous Region Development, Department of Commerce, CNNC Rich Energy and many leaders from three parties attended and witnessed the ‘agreement signing ceremony’. In the pivotal ceremony, Sineng quoted that the agreement will allow parties to utilize each other’s specialized areas and resources in a more efficient way. Sineng also believes that this cooperative innovation will further enhance Sineng’s competitiveness in the PV inverter industry and operation management capabilities, which will bring about sustainable and long-term development.