Schneider forms new Chinese JV

main Chinese subsidiary, Schneider Electric China Investment and Shaanxi Baoguang Group have signed an agreement for the formation of a new joint venture dedicated to the manufacturing and distribution of medium voltage vacuum circuit breakers.

The new joint venture will be named Schneider (Shaanxi) Baoguang Electrical Apparatus (SSBEA) and will be incorporated in the city of Baoji, Shaanxi Province as soon as regulatory approvals are satisfied. Schneider Electric will own a 70% interest in the company while Shaanxi Baoguang Group will hold the remaining 30%.

Russell Stocker, Executive Vice President, Schneider Electric Asia Pacific Operating Division, commented: “This new partnership is at the crossroad of several aspects of Schneider Electric’s strategy. It will be a new growth engine in China, the biggest market in the world for medium voltage apparatus.”

SSBEA is expected to generate, on a pro-forma basis, annual revenues of around €20m on a full year basis.