Jun 1, 2015 - technology integration and design optimisation, the Group and Kaishan ... This announcement will be availa
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中石化煉化工程(集團)股份有限公司 SINOPEC Engineering (Group) Co., Ltd. * (a joint stock limited liability company incorporated in the People’s Republic of China) (Stock Code: 2386)
VOLUNTARY ANNOUNCEMENT An Cooperation Agreement For Energy Saving Services Signed With Zhejiang Kaishan Compressor Co., Ltd. SINOPEC Engineering (Group) Co., Ltd. (the “Company”, and together with its subsidiaries, the “Group”) is pleased to announce that the Company signed an cooperation agreement for energy saving services (the “Agreement”) with Zhejiang Kaishan Compressor Co., Ltd. (浙江開山壓縮機股份有限公司, “Kaishan Co., Ltd.”) on 1 June 2015, the main contents of which include: 1.
Technology Cooperation: leveraging the Group’s strengths on engineering technology integration and design optimisation, the Group and Kaishan Co., Ltd. (“Both Parties”) will achieve “lower-grade energy recovery packaged technology” (the “Packaged Technology”, which is mainly used in refinery and chemical plants for recovering the lower-grade thermal energy from lower temperature class of hot water and other media in order to generate electric power). The Packaged Technology will be able to meet the requirement of the standard of the petroleum and chemical industry, and will be turned into a total solution for lower-grade energy utilisation;
2.
Market Exploitation: Leveraging the Group’s brand advantages and existing clientele, Both Parties will implement energy-saving services and marketing to explore the application range of the Packaged Technology;
3.
Service Mode: with the Group as the focus, Both Parties will implement various energy-saving services, including adopting energy performance contracting mode, and Kaishan Co., Ltd. will provide favorable prices;
* For identification purposes only.
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4.
Green-field Projects: The Group will give priority to the Packaged Technology and relevant products, which are the results of the collaboration of Both Parties, in the design phase of green-field projects and the Kaishan Co., Ltd. will provide prices more favorable than the relevant market prices. Both Parties will commit to providing clients with quality services that are energy saving and cost saving; and
5.
Standardization: With the progress of the ongoing research and development of the Packaged Technology as well as realizing technical readiness through operation, Both Parties will commit to turning the Packaged Technology and other upcoming technological achievements into relevant industry standards in aim of widespread application.
The Agreement is based on the principle of “mutual equality and mutual benefit and collaboration to achieve win-win” and is beneficial for Both Parties to make full use of their respective advantages to jointly explore the huge market of exhausting heat recovery in oil refining, petrochemicals, and new coal chemical industries domestically, as well as global energy and chemical industry. The Agreement will have a positive and profound impact on the energy-saving business of the Group. Kaishan Co., Ltd., an independent third party of the Company, is one of the largest Chinese screw compressor and expander manufacturing enterprises in terms of sales scale. The series of screw expander products developed by Kaishan Co., Ltd. is capable of converting lower-grade energy (for example, thermal energy in low temperature class of hot water and other media) to higher-grade energy (for example, electric energy) with high efficiency, which is in accordance with the trend of the energy recovering industry. By order of the Board SINOPEC ENGINEERING (GROUP) CO., LTD. SANG Jinghua Vice President and Secretary to the Board Beijing, the PRC 1 June 2015 As at the date of this announcement, the Company’s executive directors are LU Dong, YAN Shaochun, SUN Lili (employee representative director) and WU Derong (employee representative director); the non-executive directors are ZHANG Jianhua and LI Guoqing; and the independent non-executive directors are HUI Chui Chung, Stephen, JIN Yong and YE Zheng. This announcement will be available on the website of Hong Kong Exchanges and Clearing Limited (www.hkex.com.hk) and on the website of the Company (www.segroup.cn).
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