By Kari Williamson
The aim of this alliance is to better serve China as the world’s largest wind power market.
In each of the two joint ventures, Siemens will have a stake of 49% and its Chinese partner Shanghai Electric 51%. One of the joint ventures will be engaged in R&D and production of wind turbine equipment for the Chinese market and for Siemens’ global supply network. The second joint venture will be responsible for wind turbine equipment sales, marketing, project management and execution as well as service in China.
”We see the agreements with our long term partner Shanghai Electric as the breakthrough for Siemens in the world’s most important wind power market. With the two joint ventures we’re now optimally positioned to participate in this strong market,” says Michael Suess, Member of the Managing Board of Siemens AG and CEO of the Energy Sector.
With a cumulative installed wind power capacity of more than 40 GW and a growth rate of about 30% from 2009 to 2010 in annual installations, China is today the world’s largest wind power market. By 2020, China plans to install wind turbines with a combined capacity of 150 GW. That equals the entire renewables- and fossil-based power plant capacity installed in Germany.
“The establishment of strategic cooperation with Siemens will on the one hand improve the manufacturing capability of wind industry in China, elevate Shanghai Electric's wind business to a new level in terms of technology, management and human resources and create advantages for Shanghai Electric to hold a footing in the global wind industry; on the other hand it will also provide an opportunity to Shanghai Electric for its new energy strategy implementation. The wind market in China is entering into an integration phase, so the cooperation with Siemens for these two joint ventures will provide Shanghai Electric with new opportunities for development,” says Xu Jianguo, the Chairman and CEO of Shanghai Electric (Group) Corporation.