GE Engages in Chinese Joint Ventures to Advance the Development of Smarter Energy and the Electrification of Local Infrastructure Projects

    * GE and State Grid Corporation of China (SGCC) to address grid stability and expanding infrastructure projects through two joint ventures
    * GE and Wuhan Nari, a subsidiary of SGCC, join together to develop and implement grid efficiency and reliability improvements
    * GE and Electric Power of Shanghai (EPS), controlled by SGCC, will jointly acquire a controlling stake in Tianling Switchgear, to develop efficient green power distribution equipment
Tremendous growth over the past decade has created a massive demand for energy to support China’s business and consumer lifestyles. Today, GE (NYSE: GE) and State Grid Corporation of China (SGCC), China’s top power distributor and one of the world’s largest utilities, announce plans for several joint ventures to address China’s growing energy needs and to electrify its vast transportation infrastructure. These joint ventures, part of GE’s plans to invest US$2B in China through 2012, will play a vital role in supporting the country’s energy demand through the development of a smarter grid that will help achieve environmental and economical goals.
“China is one of the world’s fastest growing areas with a tremendous need for infrastructure,” said Dan Heintzelman, president and CEO, GE Energy Services. “Since opening our first light-bulb factory in China over 100 years ago, GE has been committed to providing cleaner, smarter and more efficient solutions, and these joint ventures are the latest step in this commitment.”
“Currently, China is experiencing one of the largest rural to urban migrations in history and is expected to become a predominantly urban society by 2020, when urbanization rates reach at least 50 percent1,” said Heintzelman. “This shift means significant changes to the electric distribution needs for a country boasting one of the world’s largest populations. Doing this in a sustainable manner will be a challenge we will help provide solutions for,” Heintzelman promised.
To tackle the country’s pressing energy needs and overcome challenges related to grid infrastructure, GE has signed two joint venture agreements with SGCC. GE will work with Wuhan Nari, a subsidiary of SGCC, to improve the efficiency and reliability of China’s electric grid by developing and implementing asset optimization technology solutions. GE also will work with Electric Power of Shanghai (EPS), controlled by SGCC, to jointly acquire a 77.5 percent controlling stake in Shanghai Tianling Switchgear Co., a Shanghai-based company developing and selling green power distribution equipment. This acquisition by GE and Shanghai Grid will reposition Tianling competitively in US$10 billion global medium-voltage switchgear industry. The formation and operation of joint ventures are subject to certain conditions, including applicable governmental approvals.