Mitsubishi Heavy Industries (MHI) and Qingdao Jieneng Steam Turbine Group have formed a joint venture, Mitsubishi Heavy Industries Jieneng (Qingdao) Steam Turbine Co., to market and design small steam turbines for use on land and marine applications.
The JV will be capitalized at RMB31 million (US$4.9 million), with MHI holding a 51% equity stake and Qingdao Jieneng Steam Turbine Group the remaining 49%. The head office will be located in the manufacturing city of Qingdao, Shandong Province. The JV will handle marketing and design of land-use steam turbines in the 50–200MW range and below 10MW marine-use steam turbines. The JV is slated to begin operation in March 2013.
MHI says it has been looking to fortify its global business structure to attract more orders and at the same time evade currency exchange risks. Qingdao Jieneng Steam Turbine Group has been seeking expansion into markets for medium-size steam turbines and marine-use steam turbines.
Qingdao Jieneng Steam Turbine Group is a well-established turbine manufacturer founded in 1950. The company manufactures approximately 500 units annually, mostly small steam turbines below 60MW. It has some 2,300 employees, is focused on steam turbines for use in factories and power generation, and enjoys a considerable market share. It also enjoys an abundant track record in deliveries to the Asian markets, especially Indonesia and India.