GE (NYSE: GE) on Tuesday announced a joint venture with Harbin Electric Machinery Co., Ltd. (HEC), a subsidiary of Harbin Power Equipment Co., Ltd. (HPEC), to manufacture and supply wind turbines to customers in China.
GE said the deal enhances its ability to compete in China’s $13 billion wind industry segment.
China, already the world’s largest wind turbine sales territory, is projected to grow an additional 500% as the country’s installed wind capacity increases from the 2009 level of 25 gigawatts to 150 gigawatts by 2020. Overall, China’s electricity demands are growing at a rate of 12% per year
The new company will manufacture GE-designed wind turbines for near-shore and offshore applications in China. Under the new joint venture, HEC will own 51% and GE 49% of the company. As part of the overall wind partnership, HEC is purchasing a 49% interest in the existing GE Shenyang Wind factory, which will continue to manufacture land-based wind turbines.
Harbin Power Equipment Co., Ltd. has partnered with GE since 2004 to provide 9FA heavy duty gas turbines and related services in China.
GE will work with the new joint venture to develop wind turbines for offshore projects in China using direct drive technology. The joint venture will also provide customer and sales support, as well as commissioning and maintenance service to help customers maintain their fleet.
GE has been active in China’s energy sector for nearly a century and has supplied the country with a wide range of products including more than 270 gas turbines, 70 steam turbines, more than 300 hydro turbines and 935 wind turbines.