(Yicai Global) May 25 -- Shares in China Western Power Industrial soared by the exchange-imposed limit today after the Chinese thermal power plant equipment maker said it has signed an engineering procurement construction contract for a 660-megawatt supercritical power station in Laos worth USS490.2 million.
Western Power’s share price [SHE:002630] surged 10 percent to finish at CNY2.21 (USD0.33).
Western Power will provide Laos’ Phongsub Eastern Power with equipment and engineering construction services for the new plant, the company said yesterday. A Hong Kong unit will be responsible for providing civil engineering, equipment installation and transportation services. Construction is expected to take just under four years.
In particular, Western Power will provide two supercritical steam generators, each with a capacity of 330 MW. Supercritical generators operate at supercritical pressure, when the water running through it is neither a gas nor a liquid. They have a greater thermal conversion efficiency than traditional coal power generation and less emissions.
The order of supercritical units from overseas customers demonstrates that Western Power’s products are gaining more recognition overseas, it said. The Zigong, southwestern Sichuan province-based firm previously built a 370 MW supercritical power plant in Turkey for USD164 million.
The value of the contract is nearly three-times the firm’s audited business revenue in 2021 and will significantly boost the company’s performance in the coming years. A successful project will help raise brand awareness in Southeast Asia, it added.
Editor: Kim Taylor