-3x Short China Regulatory News (CHNS)

14 Mar 2006 07:01

China Shoto plc14 March 2006 Press Release 14 March 2006 China Shoto plc ("China Shoto" or "the Company") £4.1 million contract win for FTD subsidiary China Shoto plc (AIM:CHNS), a leading Chinese producer of industrial batteriesand power supply systems, today announces that its holding subsidiary, BeijingFull Three Dimension Power Engineering Co., Ltd. ("FTD"), has won a £4.1 millioncontract to assist with a thermoelectric engineering project for Shandong HaihuaGroup Company Limited ("Shandong Haihua"). The agreement with Shandong Haihuaincludes a contract to supply and install a 150MW turbine for £3.55 million aswell as a technology development contract worth £0.55 million. Incorporated in 1995, FTD is a leading turbine design and refurbishmenttechnology service provider based in Beijing, specialising in the reconstructionof old turbines and the development of new products. Demand for electricity inChina continues to rise and in the last five years has increased by an averageof over 7 per cent. per annum. Current domestic-made turbines under 200MW wereoriginally designed for base load applications and as a result struggle to meetthe ever increasing large-scale peak-load adjustments that occur within China. To satisfy the requirement of these peak-load adjustments, FTD utilisingpatented technology, has independently developed and designed a single cylinder,single shaft 150 MW turbine, which has the capacity to meet the increasingenergy demands in the domestic marketplace. Compared with the existing samecapacity turbines, this type of turbine has important qualities, such as higherthermal efficiency, lower investment and maintenance cost, shorter duration ofconstruction, and better reliability and safety. The FTD 150MW turbine isregarded as the most suitable replacement product for the domestic turbineindustry. Since April 2005, when FTD's first 150MW turbine was put intooperation in Panzhihua Power Plant, a further four 150MW turbines have beendelivered for power generation projects, and this agreement with Shandong Haihuais the sixth 150MW turbine manufacturing contract for FTD. China Shoto, which was listed on the AIM market of the London Stock Exchange inDecember 2005, purchased an additional 21% stake in FTD and now holds acontrolling stake in FTD. The transaction was performed on the China BeijingEquity Exchange (CBEX) on 23 December 2005 and was reported to the market on 6January 2006. - Ends - For further information:China Shoto plc Cao Guifa, Executive Chairman Tel: +44 (0) 20 7398 7700 www.chinashoto.com Seymour Pierce LimitedStuart Lane / John Depasquale Tel: +44 (0) 20 7107 8000jdp@seymourpierce.com www.seymourpierce.com Media enquiries:AbchurchHenry Harrison-Topham Tel: +44 (0) 20 7398 7700henry.ht@abchurch-group.com www.abchurch-group.com This information is provided by RNS The company news service from the London Stock Exchange