GE has launched a joint venture with Harbin Electric Machinery (HEC), a subsidiary of Harbin Power Equipment (HPEC), to manufacture and supply wind turbines to its customers in China.
China’s wind industry is estimated to be worth $13bn (£8bn) and is projected to grow an additional 500 per cent as the country’s installed wind capacity increases from the 2009 level of 25GW to 150GW by 2020.
According to GE, China’s overall electricity demands are growing at a rate of 12 per cent per year and the government’s renewable energy policies are said to have helped GE make its decision to invest in the joint venture.
The new company will manufacture GE-designed wind turbines for near-shore and offshore applications in China. Offshore wind turbines will use direct drive technology
Under the new joint venture, HEC will own 51 per cent and GE 49 per cent of the company. As part of the overall wind partnership, HEC is purchasing a 49 per cent interest in the existing GE Shenyang Wind factory, which will continue to manufacture land-based wind turbines.
As well as developing wind turbines, the joint venture will also provide customer and sales support, plus commissioning and maintenance services.