Sunpower secures contracts with one of the world’s largest PTA producers

SGX-listed Sunpower Group Ltd., an environmental protection solutions specialist with a strong focus on expanding into anti-pollution investment projects ("Green Investments" or "GI"), has secured Manufacturing and Services (M&S) contracts totalling RMB135 million with Hengli Petrochemical (Dalian) Co., Ltd. ("Hengli Petrochemical"), a subsidiary of Hengli Group Co., Ltd. ("Hengli Group"), to manufacture core equipment for its Purified Terephthalic Acid (PTA) project, which has a production capacity of 2.5 million tons per year.

PTA is a chemical used to produce polyester.

The contract involves the manufacture of a distillation column, as well as crystallisers and heaters for Hengli Petrochemical's PTA project, which is located in the petrochemical industrial park of the Changxing Island Economic Zone in Dalian, China. Delivery of the equipment is expected to be completed in the first half of 2019.

Founded in 1994, Hengli Group is a diversified international enterprise with core businesses in petrochemicals, advanced polyester materials and textiles. Ranked 235th by revenue on the Fortune Global 500, Hengli Group has one of the world's largest single-capacity PTA plants, and
is also one of the world's largest functional-fiber production bases and weaving enterprises.

Mr. Guo Hong Xin, Executive Chairman of Sunpower, said, "Winning this contract is a strong encouragement for our Group as Hengli Group is a repeat customer and a leading company in its field. It is also a testament to our close and long-standing relationship with the Hengli Group,
something we have also forged with many other customers. We will continue to explore more ways to provide value to the 1500 customers we have served to date in over 15 industries, across 30 countries."

"As a key business segment, M&S will continue to be an integral part of the Group's expansion strategy and we will continue to leverage our strong research and development capabilities to offer better products and solutions to customers and expand our customer range across more industries. Growing our M&S business is also synergistic towards the expansion of the Green Investment business which is the Group's value creator and growth driver, given its de facto monopolistic business model, huge market potential arising from China's environmental push, as well as its long-term recurring income and high-quality cashflows," Mr Guo continued.