GE Energy has signed an agreement to establish a service joint venture with the Harbin Power Equipment Company (HPEC) of China.
The joint venture will provide repair and field services for GE Frame 9FA heavy-duty gas turbines.
The $16 million joint venture, called the GE-HPEC Energy Service Company, will be located in the development zone of Qinhuangdao city where HPEC owns a manufacturing base. GE will own 51%of the new company while HPEC will take a 49%share.
Construction of a new facility for the joint venture is expected to be completed by June of 2005. GE’s 9FA turbines will be assembled there by HPEC in a technology transfer agreement.
The joint venture’s site will cover an area of 20,000 square metres with a production building, auxiliary plants, outdoor area and offices. The site will be equipped with tools for assembly and disassembly of turbines and parts for serving or repairing the units. There will be inspection and testing facilities as well as a metallurgical laboratory for analysis and verification.
The consortium of GE and HPEC won the bidding in 2003 to supply 13 of the 9FA gas turbine-based combined-cycle systems in a contract worth $900 million, as part of China’s Gas Turbine Power Plants Construction Project.