(ADPnews) - Sep 28, 2010 - US industrial giant General Electric (NYSE:GE) said Monday it had agreed with Chinese Harbin Electric Machinery Co Ltd, a unit of Harbin Power Equipment Co Ltd (HKG:1133), to set up a 49/51 joint venture in China to make wind turbines.
With this move, GE aims to enhance its position on the Chinese wind market, which is valued at USD 13 billion (EUR 9.7bn). The government's supportive green energy policies additionally boosted GE's interest towards the Chinese market, it said.
The entity will produce wind turbines with GE design for offshore and near-shore applications in China. It will also be engaged in the provision of sales and customer support and commissioning and maintenance services.
By 2020, China's installed wind power capacity is expected to grow by some 500% to 150 GW, GE said. At the same time, electricity demand in the country is rising by 12% each year, providing more and more opportunities for firms from the energy sector.
GE and Harbin Power have worked together since 2004 on the provision of heavy duty gas turbines and related services. In addition to the joint venture agreement, Harbin will buy a 49% stake in GE's Shenyang wind factory, which will keep on the production of onshore wind turbines.
At present, GE has some 21 GW installed wind capacity around the world. The company has been present on the Chinese energy sector for nearly 100 years.
(USD 1 = EUR 0.742)
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