Siemens and Shanghai Electric are aiming to set up two new joint ventures for the Chinese wind power market. In each of the joint venture, Siemens will have a 49% stake and Shanghai Electric will have 51%.
The company will form the joint venture to engage in research and development and the production of wind turbines for the Chinese market as also for Siemens' global supply network, while the second joint venture will be for wind turbine equipment sales, marketing, project management and execution. This was in continuance of regionalization of its wind power business in key markets. The agreements are subject to the approval of the antitrust authorities.
The entity has 16 research and development centers, 69 operating companies and 64 regional offices in China. At present, Siemens has a workforce of over 25,000 in China. For almost 15 years, Siemens and Shanghai Electric have been working together in six ongoing joint ventures in power generation and transmission. Since October, the business unit - Asia-Pacific - in the wind power division has been based in Shanghai.