Alstom plans global turbine production base in China

BEIJING, June 11 — French power and transportation equipment maker Alstom plans to set up a global production base in China, according to Xinhua’s Shanghai Securities News.

The newspaper quoted Alstom China president Alain Berger as saying that the production base will manufacture mainly turbine power generating equipment, which will be exported. He did not give details.

He said that Alstom will consider, as a next step, increasing its share of the market for thermal power generating equipment.

Alstom has 24% of the China market for hydroelectric equipment and 50% of the market for nuclear power generating equipment.

“Alstom’s market share in China’s thermal power markets was much lower than that in the other two markets,” Berger was quoted as saying.

And according to Xinhua, a RMB240 million (US$30.7 million) joint venture between Alstom (China) Investment Co and Beijing Heavy Electric Machinery Works began operations in Beijing on Friday.

Alstom has 60% of the joint venture, called Alstom Beizhong Power (Beijing) Co, which is manufacturing six 600MW steam turbines and generators for the Pingwei, Dabieshan and Longshan power plants in China. The products are planned to be delivered between 2006 and 2007.

Alstom entered the joint venture in 2004, saying at the time it hoped to increase its China revenues to US$1 billion (RMB7.8 billion) by 2006. Alstom’s overall group sales to Asia in 2005 were EUR2.1 billion (RMB21.6 billion) in the first nine months of its 2005/2006 financial reporting year.

Alstom enjoys the reputation as the largest power generation supplier to the Three Gorges Project – the company provides advanced technology and equipment to altogether 16 turbine generator units among the total of 26 units.

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