Siemens and Shanghai Electric are further expanding their strategic partnership in the Chinese energy sector.
The two companies have signed a general agreement to that effect for a new manufacturing plant in Lingang, which is located near Shanghai. The total investment in the manufacturing plant amounts to more than EUR120 million.
The two companies also announced the founding of the new joint venture Shanghai Electric Power Generation Equipment Company. The business operations of Shanghai Turbine Company Ltd., Shanghai Turbine Generator Company Ltd. and Shanghai Power Equipment Company Ltd. will be combined in this joint venture.
Since they were founded in 1996, the three Siemens and Shanghai Electric joint ventures have reportedly provided equipment for power plants with a total capacity of 100 gigawatts. At the new manufacturing plant in Lingang the new joint venture Shanghai Electric Power Generation Equipment will with immediate effect produce major components for fossil-fueled power plants.
"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 1000 megawatts," 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."
The Power Generation Group of Siemens AG is one of the leading companies in the international power generation sector. In fiscal year 2006, Siemens PG posted sales amounting to more than EUR10 billion and received new orders totaling EUR12.5 billion.
