Siemens Power Generation (PG) announced today that it will establish a joint venture with Shanghai Electric Group (SEG) to support its growing gas turbine business in China.
The joint venture, with Siemens holding a 51 percent stake and SEG holding 49 percent, will manufacture key components of Siemens’ most advanced gas turbines. The company, Siemens Gas Turbine Parts, Shanghai, will start operations in early 2005. Siemens and SEG will each invest approximately 55 million Euros in the joint venture.
Recently, in a consortium with SEG, Siemens secured orders valued at approximately 210 million Euros to supply nine gas turbines for four combined cycle power plants in China.
To maintain its position in one of the largest power markets in the world, PG has established three power plant equipment manufacturing joint ventures in Shanghai, a service joint venture in Beijing, and another joint venture for power plant controls in Nanjing.
Siemens Power Generation currently has 14 facilities in China, including five production facilities, and employs approximately 7,200 staff.