Dongfang Electric to Supply BTG Package for Huaneng Duanzhai 2,000-Megawatt Coal-fired Project

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Researched by Industrial Info Resources (Sugar Land, Texas)--Dongfang Electric Corporation (SHA:600875) (DEC) (Chengdu, Sichuan) signed the contract to supply the boiler, turbine and generator (BTG) package for the Phase I, 2,000-megawatt (MW), coal-fired project of Huaneng Duanzhai Power Plant in Chengdu on February 2, 2010, as DEC announced on February 9.

Huaneng Duanzhai Power Plant is at Duanzhai Village in Huangpu Town of Fugu County, Yulin City, in Shaanxi province. The power plant has a total planned capacity of 8,000 MW to be built in four phases, together with an associated coal mine of 22 million metric tons per year. Two ultra-supercritical, 1,000-MW, coal-fired units, together with desulfurization and denitration devices, and an 8 million-metric-ton-per-year coal mine will be built in Phase I. Total investment of Phase I will be more than $1.5 billion. The project is to be developed and operated by Huaneng Duanzhai Coal Power Company Limited (Yulin, Shaanxi), a company jointly invested by China Huaneng Group (Beijing) (80%) and Shaanxi Coal & Chemical Industry Corporation (Xi'an, Shaanxi) (20%).

Construction on the Phase I project kicked off in April 2009. Presently, the project is under engineering and is waiting for final approval from the National Development and Reform Commission, the top planner of China. According to the schedule, construction of the project is expected to begin in April 2010, and both units of the Phase I project are expected to begin operations by the end of December 2012.

As one of the top three power-equipment manufacturers in China, DEC successfully overcame the impact of the reconstruction after the massive earthquake in May 2008 and the international financial crisis in 2009. DEC's annual sales income reached $5.45 billion, an increase of 9.9% year-over-year, and received more than $10 billion of new orders in 2009.

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