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Dongfang Electric wins 1.24b yuan turbine contract

(Agencies)
Updated: 2008-05-21 15:22

Dongfang Electric Corp Ltd said its unit Dongfang Turbine Co Ltd has won a 1.24 billion yuan ($178.06 million) contract to provide 134 wind power generation units to China Energy Conservation Investment Corp, its first deal since last week's earthquake.

The Sichuan company, the listed arm of State-owned Dongfang Electric Corp suffered heavy damage from the earthquake.

Last Friday, the company said its turbine facilities suffered extensive mechanical and structural damage in the earthquake. Following the news, the company's A-shares fell by the 10 percent trading limit on two consecutive days this week.

In a statement filed with the Shanghai Stock Exchange today, the company said 97 employees of the turbine unit, which contributed about 20 percent of the listed company's revenue and 45 percent of net profit, are now known to have died in the earthquake. The casualty count is as of May 19.

The turbine unit's wind power operations and turbine production plants are now operating normally, with the exception of the heavily damaged plant in Sichuan's Mianzhu city, which is very close to the epicenter.

Normal operations have also resumed at the listed company's headquarters, boiler and electrical machinery operations.

The company said aftershocks have created safety issues which have prevented inspectors from conducting a thorough assessment of the damage at the Mianzhu plant. As such, rumors about the group's earthquake losses that have been circulating in the markets have no basis in fact.

A-shares of Dongfang Electric closed down 10 percent to 34.33 yuan yesterday, while its H-shares fell 5.65 percent to HK$23.4 ($3.00).