Siemens and Shanghai Electric are further expanding their strategic partnership in the Chinese power plant market with the opening of a EUR120 million (RMB1.23 billion) manufacturing plant in Lingang, near Shanghai.
The new plant is producing major components for fossil-fuelled power plants.
The two companies also announced the founding of the new joint venture Shanghai Electric Power Generation Equipment Co. The business operations of Shanghai Turbine Company, Shanghai Turbine Generator Company and Shanghai Power Equipment Company will be combined in this joint venture.
Since they were founded in 1996, the three Siemens and Shanghai Electric joint ventures have provided equipment for power plants with a total capacity of 100GW. “With the new manufacturing capacity we will together with our partner Shanghai Electric be able in the future to even better meet China’s increasing demand for advanced steam power plants in the capacity class above 1,000MW,” said Klaus Voges, president of Siemens Power Generation.
“Because power consumption will continue to increase in China technologies which use fossil fuels such as indigenous coal to generate electricity in an environmentally compatible and economical manner will be particularly important for the country’s future.”
Separately, Shanghai Electric this week said it will acquire Shanghai Power Transmission & Distribution, creating a US$7.3 billion (RMB55 billion) energy group; and said it would sell its 50% stake in Shanghai Diesel to Shanghai Automotive Industry Corporation.