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French industrial conglomerate Alstom plans to lift its turnover in China to 1 billion euros within two years by tapping into the boom in the nation's power and transportation markets.
That is part of the plan for Alstom - which had a 600 million turnover last year - to increase its presence in emerging markets like China, after the company suffered from a financial crisis over a French government-backed 2.2-billion-euro bailout programme, said Alstom Chairman and CEO Patrick Kron.
On the power industry front, Kron said Alstom plans to supply an entire range of steam turbine and generator products to the Chinese market, including those for nuclear plants.
In the latest stage of its expansion in China, Alstom signed a framework agreement with Beijing Beizhong Steam Turbine Generator to establish a joint venture manufacturing 600-megawatt class steam turbines and generators.
Alstom will hold a 60 per cent stake in the joint venture, with the Chinese partner taking the remaining 40 per cent.
Kron, who declined to reveal the scale of investment in the joint venture, said it will focus on manufacturing subcritical and supercritical stem turbine generator technology which will produce electricity both efficiently and in an environmentally friendly manner.
The new venture comes as China is engaged in a massive scheme to constructing new power plants to keep up with surging electricity demand. Most Chinese generator manufacturers have been operating around the clock to fulfill orders that will occupy factories for the next two years.
"The Chinese power market (will) maintain a double-digit growth in next few years. The annual incremental generating capacity represents one-third of the total capacity of France," said Kron.
"The new joint venture will give us a better understanding of the market, and further enlarge our presence in China," he added.
Alstom has been active in supplying equipment and technology to China's power industry, especially the hydropower sector. The company has supplied the left-bank of the Three Gorges Project with eight of its 14 700-megawatt generators.
Kron said Alstom is also looking forward to tapping the potential in the nuclear power business, as the Chinese Government plans to raise the country's nuclear power-generating capacity fourfold to 36,000 megawatts by 2020.
(China Daily July 19, 2004)
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