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Siemens and Shanghai Electric strengthen strategic partnership Official opening of new manufacturing plant in Lingang

02.08.2007
Siemens and Shanghai Electric are further expanding their strategic partnership in the Chinese power plant market. The two companies signed a general agreement to that effect on August 1 at the official opening of a new manufacturing plant in Lingang, which is located in the vicinity of the city of Shanghai.

The total investment in the manufacuring plant amounts to more than EUR120 million. The two companies also announced the founding of the new joint venture Shanghai Electric Power Generation Equipment Co. Ltd. (SEPG) The business operations of Shanghai Turbine Company Ltd. (STC), Shanghai Turbine Generator Company Ltd. (STGC) and Shanghai Power Equipment Company Ltd. (SPEC) will be combined in this joint venture.

Since they were founded in 1996, the three Siemens and Shanghai Electric joint ventures have provided equipment for power plants with a total capacity of 100 gigawatts. At the new manufacturing plant in Lingang the new joint venture Shanghai Electric Power Generation Equipment will with immediate effect produce major components for fossil-fueled power plants. "With the new manufacturing capacity we will together with our partner Shanghai Electric be able in the future to even better meet China`s increasing demand for advanced steam power plants in the capacity class above 1000 megawatts," said Klaus Voges, President of Siemens Power Generation. "Because power consumption will continue to increase in China technologies which use fossil fuels such as indigenous coal to generate electricity in an environmentally compatible and economical manner will be particularly important for the country`s future."

The Power Generation Group (PG) of Siemens AG is one of the premier companies in the international power generation sector. In fiscal 2006 (which ended September 30), Siemens PG posted sales amounting to more than EUR10 billion and received new orders totaling EUR12.5 billion, according to U.S. GAAP Group profit amounted to EUR782 million. On September 30, 2006, PG had a work force of approximately 36,400 worldwide.

Siemens AG
Corporate Communications
Press Office Power Generation
Alfons Benzinger
Tel. 49 9131/18-7034
Fax: 49 9131/18-7039
mailto:alfons.benzinger@siemens.com
Reference Number: PG 200708.061 e

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