China Huaneng Group has signed a 4.5 billion yuan contract with Dongfang Electric for power generation equipment supply in a move to help the earthquake-hit company get back on its feet.
Under the agreement, Dongfang will provide Huaneng six thermal power units, each with a capacity of 660 mW. The company will also provide several wind power units, with a combined capacity of more than 4,000 mW, Huaneng said.
This is the largest contract Dongfang has got since the May 12 earthquake. The company was one of the State-owned enterprises hardest hit by the earthquake, according to the State-owned Assets Supervision and Administration.
The quake severely damaged Dongfang Electric's steam turbine business. Several buildings of the company's plant in Hanwang in the city of Mianzhu collapsed, killing about 100 people, said the company.
But the quake has had marginal impact on the company's boiler and power generator businesses. Except for the steam turbine plant in Mianzhu, other plants under the company have started operation.
Huaneng will join forces with Dongfang to help the company's reconstruction, said Li Xiaopeng, general manager of Huaneng. The company has donated more than 10 million yuan to Dongfang for the purpose. Apart from the new order, more than 5,000 mW of Huaneng's power equipment are already under production in Dongfang.
Several other companies have also signed contracts with Dongfang since the quake. China Energy Conservation Investment Corporation last week signed a 1.24 billion yuan contract with Dongfang for the supply of 134 wind power units.
Bank of China also extended to Dongfang a 30 billion yuan credit line to help fund reconstruction of factories damaged by the earthquake.
Shares of Dongfang Electric yesterday rose 8.49 percent to 32.70 yuan on the Shanghai Stock Exchange.
Questions:
1. How much was the recent contract worth that was signed between China Huaneng Group and Dongfang Electric?
2. Why was this contract of significance for Dongfang?
3. In response to the good news how did shares of Dongfang Electric respond yesterday?
Answers:
1. 4.5 billion yuan .
2. The company was one of the State-owned enterprises that was hardest hit by the earthquake.
3. Rose 8.49 percent.
（英语点津 Helen 编辑）
About the broadcaster:
Brendan joined The China Daily in 2007 as a language polisher in the Language Tips Department, where he writes a regular column for Chinese English Language learners, reads audio news for listeners and anchors the weekly video news in addition to assisting with on location stories. Elsewhere he writes Op’Ed pieces with a China focus that feature in the Daily’s Website opinion section.
He received his B.A. and Post Grad Dip from Curtin University in 1997 and his Masters in Community Development and Management from Charles Darwin University in 2003. He has taught in Japan, England, Australia and most recently China. His articles have featured in the Bangkok Post, The Taipei Times, The Asia News Network and in-flight magazines.
