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Foreign giants battle in China's gas turbine market

BEIJING - Shanghai Electric Group Co Ltd and Siemens of Germany established a joint venture in Shanghai for manufacturing key parts of heavy-duty gas turbines in Shanghai.

The establishment of the joint venture on Tuesday highlights the fiercer competition among GE, Siemens and Mitsubishi, giants in the power plant equipment market, within the rising gas turbine market in China.

Involving an investment of 55 million euros (US$72 million), the joint venture will mainly produce combustion chambers and high-temperature turbine vanes. Siemens holds 51% of the joint venture shares, and Shanghai Electric Group takes the rest.

Behrens, president of the Siemens (China) Co Ltd, said Siemens will transfer the advanced technology to Shanghai Electric Group for producing the part of gas turbines so as to localize the production for competitiveness.

In addition, Harbin Boiler Limited Liability Company and GE, and the Dongfang Electric Group and Mitsubishi also joined hands for form new entities in the country.

It is learned that during the national bids for gas turbines, the orders for 45 gas turbines with a combined generating capacity of 17 million kilowatts were carved up by the three giants.

According to the plan of the State Development and Reform Commission, the country's combined installed capacity of gas turbines will reach 55 million kw by 2020.

(Asia Pulse/XIC)

Nov 25, 2004

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