(china own 51% of all company doing business in china territory, )
General Electric Co. (GE) announced a joint venture with a subsidiary of Harbin Power Equipment Co. (1133.HK) to manufacture and supply wind turbines to its customers in China, as the industrial conglomerate looks to extend its reach in the nation’s $13 billion wind industry.
China, already the world’s largest wind turbine sales territory, is projected to see demand in that segment surge as the nation’s installed wind capacity is predicted to jump from last year’s level of 25 gigawatts to 150 gigawatts by 2020.
“This is an important investment in China for GE and one that will enable us to participate in the tremendous growth potential of the Chinese wind turbine segment,” said Jack Wen, president and chief executive of GE Energy China. GE has been active in China’s energy sector for nearly a century, supplying the country with 935 wind turbines.
The new company will manufacture GE-designed wind turbines for near-shore and offshore applications in China. Near-shore wind turbines are classified as wind turbines installed on land within three kilometers of the nearest shoreline, or lying on the water within 10 kilometers of the shore.
Under the joint venture, Harbin’s electric machinery division will own 51% of the company, with GE owning the rest. Meanwhile, Harbin will purchase a 49% interest in an existing GE Shenyang Wind factory, which will continue to manufacture land-based wind turbines.
China has said it wants renewable energy like wind to meet a higher percentage of its energy needs in the future, as it seeks to rein in emissions that have made its cities among the smoggiest on Earth. But experts have said the country’s transmission network currently can’t absorb the rate of growth in renewable-energy output.
GE’s announcement comes just days after Chief Executive Jeff Immelt warned that the lack of a comprehensive U.S. energy policy and its “stupid” current structure are causing America to fall behind in new energy fields. In sharply worded comments at an energy event in Washington, he praised China’s approach to energy and criticized what he called a stalled effort to revamp U.S. energy policy.
Immelt went on to say China is moving faster to develop clean technologies such as nuclear power, electric vehicles and wind power. He also said China has the right mix of a big local market, innovation in technology, a low-cost supply chain and government policy support. China’s State Grid utility, he said, is larger than nearly all U.S. utilities combined.
ept. 27 (Bloomberg) — General Electric Co., the world’s second-biggest maker of wind turbines, formed a joint venture with China’s Harbin Power Equipment Co. to make and supply equipment in the world’s biggest market.
GE, whose power-generation equipment supplies a third of the world’s electricity, sees the $13 billion wind market expanding sixfold to 150 gigawatts by 2020, the Fairfield, Connecticut-based company said in a statement today. The venture is with Harbin Power’s subsidiary, Harbin Electric Machinery Co.
GE Chief Executive Officer Jeffrey Immelt is expanding partnerships in China in areas that include aviation, health care and energy. He’s pointed to the country as one with a consistent energy policy that allows for rapid clean energy development. The wind venture will make equipment for projects including offshore developments using direct-drive, or gearless, technology, a market GE has also targeted in Europe.
The venture announced today expands Harbin’s relationship with GE. Harbin has teamed with the U.S. company to provide heavy-duty gas turbines since 2004, Gong Jing Kun, chairman of Harbin Electric, said in the statement.