Alstom and SEG unite to corner coal-fired boiler market

• 13 years ago (2011-04-24)
• Junior Isles

Asia 859

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French-Swiss power company Alstom has announced that it is to partner with Shanghai Electric Group (SEC) to create a joint venture in supplying boilers for coal-fired power generating facilities, the company said.

Many experts see new, so-called ‘clean coal’ technologies for power generation as a solution to large scale energy provision, especially for China since it is particularly dependent on coal-fired power generation, having immense deposits of coal available.

The two groups aim to see the new venture becoming the world leader in its field. Combined sales in this sector by the two groups totalled about €2.5 billion ($3.64 billion) last year, Alstom said.

The venture, to be equally owned by each partner, will be called Alstom-Shanghai Electric Boilers Co and will be registered in Shanghai.

Alstom said that demand for coal-fired power stations was particularly strong in emerging economies.

Alstom's chief executive Patrick Kron said that the creation of the venture marked "the first global project, on a world scale, tied up by Alstom with a Chinese partner."

It would be "an essential factor in developing our positions in China, the biggest market in the world, and in strengthening our global presence in coal-fired, turnkey power stations," he said.