GE sets up turbine component venture
By Wu Yong (China Daily)
Updated: 2004-05-12 08:51

US-based General Electric (GE) Energy launched one of its most important expansion steps in China by beginning construction on its gas turbine components plant yesterday in Shenyang, capital of Northeast China's Liaoning Province.

This new plant is designed to produce gas turbines components for six Chinese State power projects. GE won the US$900 million gas turbines bid last year with the Harbin Power Equipment Co Ltd. GE is to supply 13 of the 23 sets of gas turbines needed in the project. This plant is expected to be finished at the end of the year and will begin producing equipment in March 2005.

The plant involves a total investment of US$ 18.9 million and is co-funded by GE Energy and China's leading aero-engine producer Shenyang Liming Aero-Engine Group Co Ltd. GE Energy has a 51 per cent stake, while Liming has 49 per cent.

"This co-operation will help us expand the local market and further push our globalization strategy," said Jiang Wei, general manager and chairman of the board from Shenyang Liming Aero-Engine Group Co Ltd.

Jiang noticed that both companies had advantages and that co-operation was the best option.

"This new joint venture is another milestone for GE. With the products localization, we could better meet the burgeoning local demand," said Bill Cooney, general manager of GE China's gas turbine programme.

This is just one step in GE Energy's marketing strategy in China. In February, GE Energy set up a gas turbine service company in Qinhuangdao City of North China's Hebei Province. Northeast China's Harbin Power Equipment Co Ltd would be responsible for installation.

"As one of the main participants in China's energy market, GE Energy is bringing more and more products, technology and advanced management skills into China. China's gas turbine project is one of the main driving forces for GE's development," said Steve Fludder, president of GE Energy China.

The introduction of advanced gas-turbine manufacturing technology will help readjust China's energy structure and help the country's power industry develop, said Lu Yanzhi, vice-director of China's machinery industry federation.

"Liming Aero is one of GE's biggest providers and is an excellent technological partner in China," said Steve Schneider, vice-president of GE.

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