Siemens to Transfer Power Orders to Shanghai Electric

Insiders revealed that Siemens would transfer 13,000MW power equipment orders to Shanghai Electric Group Co., Ltd. (SHSE: 601727; SEHK: 2727), one of China's top electric power equipment makers, from 2009 to 2013, but the German electric and electronic giant made no response.

The transfer of such a large number of orders is in accordance with Siemens' key strategy adjustment, and then the world-known group will likely release its operation cost pressure, estimated people familiar with the matter.

Both parties have kept a long-term cooperation in the electromechanical equipment manufacturing, and their major joint-venture subsidiaries include Voith Hydro Shanghai Ltd., Siemens High Voltage Switchgear Ltd., Siemens Gas Turbine Parts Ltd., and Siemens Power Equipment Packages Co., Ltd. (SPEP).

Presently, Shanghai Electric strives for a fast expansion in the thermal power equipment, heavy industry equipment, and elevator sectors, and it wants to set foot in the overseas high-end thermal power equipment market via a closer cooperation with Siemens.

Source: dycj.ynet.com (June 24, 2009)

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