Aims to capture huge development potential of the new energy industry. Xinyi Glass Holdings Limited (“Xinyi Glass” or the “Group”) (stock code: 00868), a leading integrated automobile glass, energy-saving construction glass and high quality float glass manufacturer, has announced that Xinyi Energy Smart (Wuhu) Company Limited (“Xinyi Energy Smart”), its wholly-owned subsidiary, has signed a wind farm project investment framework agreement with The People’s Government of Jinzhai County of Lu’An City of Anhui Province.Under the agreement, subject to the approval of the Development and Reform Commission of Anhui Province, Xinyi Energy Smart is to invest wind farms generating up to 300 MW electricity at suitable geographical locations within Jinzhai County.
Jinzhai People's Government will mainly be responsible for the land use rights and planning for the land, as well as liaising with relevant government authorities and electricity supply business units for connecting with the wind farms with the local power grids. On the other hand, the Group will establish a company for the investment and operation of this wind farm project.
To counter the increasingly severe environmental pollution problem, China has been actively encouraging the development of wind power in recent years. In 2013, the State Council issued two important documents, the “12th Five-Year Plan of Energy Development” and “Atmospheric Pollution Prevention Action Plan (2013-2017),” in which the Government proposed to reform the structure of energy and an increase in the proportion of renewable energy in energy consumption in the future. The Government has also initiated other major policies and measures regarding restrictions on energy use, connections to the power grid and subsidies for the development of renewable energy which should facilitate the healthy development of wind power.
Xinyi Glass possesses extensive operational experience and expertise in the energy saving and new energy sectors, as well as the experience of using renewable energy and new energy, such as residual heat and solar energy in the production process of electricity generation. The Group has always paid great attention to the development of renewable energy and new energy, and already established a strong team of respective research specialists. The Group has also installed roof-top solar modules at a number of its plants. Furthermore, apart from its position as a leading manufacturer of energy-saving low-emission (Low-E) construction glass in China, the Group has spun off Xinyi Solar Holdings Limited at the end of 2013 to extend downstream operations by developing solar farms.
Mr LEE Yin Yee, Chairman of Xinyi Glass, said, “With the increasing market demand for wind power and other clean energy as well as supportive state policies on new energy, the Group believes that the wind farm project presents a promising investment opportunity. The solid business foundation of Xinyi Glass and the operational experience and expertise of both the Group and Xinyi Solar in the energy saving and new energy sectors give us strong confidence in our business development plan for expansion into the wind power market. The Group aims to capture the enormous development potential of the new energy market through greater diversification of its business, and to gain higher profits and deliver fruitful returns to shareholders.”