Siemens and Shanghai Electric in new JV pact

Siemens is expanding its partnership with Shanghai Electric with the formation of one more joint venture, Shanghai Electric Power Generation Equipment Co. Ltd. (SEPG), which will combine the existing businesses of Shanghai Turbine Company Ltd. (STC), Shanghai Turbine Generator Company Ltd. (STGC) and Shanghai Power Equipment Company Ltd. (SPEC) will be combined in this joint venture.

Since 1996, three Siemens and Shanghai Electric joint ventures have provided equipment for power plants with a total capacity of 100 gigawatts.

The two companies unveiled their agreement on 1 August at the official opening of a their new €120-million manufacturing plant in Lingang, in the vicinity of the city of Shanghai.

At the new manufacturing plant in Lingang the new joint venture Shanghai Electric Power Generation Equipment will 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," Voges added.

The Power Generation Group (PG) of Siemens AG is one of the premier companies in the international power generation sector. In fiscal 2006, ending on 30 September, Siemens PG posted sales amounting to more than €10 billion and received new orders totaling €12.5 billion, according to U.S. GAAP. Group profit amounted to €782 million.