Siemens raises stake in Chinese joint venture

Tuesday, 29 June 2010 Siemens announced that it has increased its share in Shanghai Electric Power Generation Equipment Co Ltd (SEPG) - its joint venture with China's Shanghai Electric Group - from 33.7% to 40% after receiving approval from authorities. SEPG supplies power generation products and solutions for coal-fired power plants, as well as for the conventional part of nuclear power plants. Wolfgang Dehen, CEO of Siemens' energy sector, commented: "The share increase in the joint venture is another important step for Siemens to enforce its market penetration in the huge Chinese energy market and underlines our successful strategic partnership with Shanghai Electric." He noted, "Power demand in the fast-growing Chinese economy is expected to rise on average by 4% annually over the next two decades." Siemens and Shanghai Electric are discussing establishing a new service joint venture for the rapidly growing Chinese steam and gas turbine power plant market. According to Siemens, together with Shanghai Electric, it is market leader in the 1000 MWe class of advanced steam power plant technology in China.