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China Ordnance, Thai Green Energy In Silicon Solar Supply Pact



By Jonathan Shieber, Of DOW JONES CLEAN TECHNOLOGY INSIGHT

SHANGHAI -(Dow Jones)- A Chinese state-owned thin-film solar manufacturer with ties to the country's military-industrial giants is beginning to expand outside of China.

Beijing-based China Ordnance Equipment Industry Group Co. has signed its first deal to supply thin-film silicon to a project developer in Southeast Asia, the company said in a statement Monday.

Through an exclusive cooperation agreement with the Thai Green Energy Co. Ltd., China Ordnance Equipment Group, a subsidiary of China South Industries Group Corp., will supply thin-film-based photovoltaic solar modules throughout Southeast Asia, according to the statement.

Countries covered by the agreement include Vietnam, Laos, Cambodia, Myanmar, Thailand, Malaysia, Singapore, Indonesia, the Philippines, Brunei and East Timor.

Under the agreement, the two will create a joint venture, the Ordnance Equipment Group of Thailand. They expect the venture will supply enough modules to develop approximately 100 megawatts of solar-power projects.

In August, China Ordnance Equipment Industry Group said it began manufacturing amorphous silicon-based solar modules and that the company would ultimately invest CNY8 billion ($1.2 billion) to develop an annual output capacity of 500 MW of photovoltaic modules.

For now, China Ordnance Group is working with a 50-MW production line, and earlier in August the company said it had signed an agreement with the government of the northeastern province of Jilin to develop three industrial bases in the Changchun High-tech Zone.

China Ordnance's development efforts will focus on wind power equipment manufacturing and the research and development of new wind technologies, solar manufacturing using thin-film production methods, and the development of new transmission, distribution and storage technologies, according to a statement from the Jilin government issued earlier in October.

China Ordnance and its parent China South Industries Group Corp. were created in the reorganization of China's defense industry in 1998 and 1999.

At the time, the central government split its main military and industrial manufacturers into the civilian-facing China South Industries Group and the more military-minded China North Industries Corp., or Norinco.

Norinco has been sanctioned by the U.S. government for allegedly selling missile technology to Iran, and sells arms to governments around the globe.

(Dow Jones Clean Technology Insight covers news about public and private clean-technology and alternative-energy companies.)

-By Jonathan Shieber, Dow Jones Clean Technology Insight; 8621-6120-1200; jonathan.shieber@dowjones.com


  (END) Dow Jones Newswires
  11-02-091750ET
  Copyright (c) 2009 Dow Jones & Company, Inc.

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