Shanghai Electric alliance Siemens grabs high-end wind power market

Reading: Shanghai Electric and Siemens form a strategic alliance: The two parties will set up two companies respectively, both Chinese and foreign companies are 51% and 49%. This means that Shanghai Electric continues its wind power development strategy: to get rid of low-end competition and enter China and the global high-end wind power market.

"The negotiation was very difficult, about three years, but now it is finally talked about." Cheng Xingzhi, general manager of Shanghai Electric Wind Power Equipment Co., Ltd., told the "First Financial Daily" yesterday. He is referring to a major strategic alliance between Shanghai Electric and Siemens: The two sides will set up two companies respectively. Both Chinese and foreign companies have 51% and 49% of their shares. This means that Shanghai Electric continues its wind power development strategy: to get rid of low-end competition and enter China and the global high-end wind power market.

Cheng Xingzhi told reporters that one of the two new joint ventures is a manufacturing company that develops and produces wind turbines for the Chinese market and Siemens global supply network, while the sales company is responsible for wind power equipment sales, project management and project execution in China, and related Development and services. Another senior executive of Shanghai Electric revealed that the sales of joint venture manufacturing companies will be incorporated into Siemens' financial statements, and sales of joint venture sales companies will be incorporated into the list of Shanghai Electric listed companies. The profits of the two joint ventures are calculated according to their respective share ratios and recorded in their respective financial statements.

The trend of domestic companies choosing large overseas wind turbine manufacturers to cooperate has been evident in the past year. On September 26 last year, the electric company of Harbin Electric Group signed an agreement with GE to establish Harbin General Wind Energy (Jiangsu) Co., Ltd. in Zhenjiang, Jiangsu. Motor company holds 51% stake, General Electric holds 49% stake, and motor company It also acquired a 49% stake in GE Energy (Shenyang) Co., Ltd., and changed its name to “GM Harbin Wind Power (Shenyang) Co., Ltd.”, thus establishing a platform for all-round cooperation. Yang Guowei, president of Alstom Power China, also told the media on June 2 this year that the company is currently in contact with two or three Chinese state-owned companies. The goal is to form a joint venture to form a global company in the field of wind power. Chinese and foreign companies may be in joint ventures. Each will hold 50% of the shares, Alstom may put some overseas sales and all wind power technologies into the joint venture, and the other party will also inject its sales in the Chinese market into the joint venture.

For the past, many Chinese wind power companies directly obtained overseas wind power manufacturers with different technical authorizations. The reporter also learned that this time both Shanghai Electric and Siemens will put their own technology in joint ventures. Cheng Xingzhi said that whether it is double-feed technology or direct-drive technology, it will be the wind power technology route considered by the joint venture company in the future. Although direct-drive technology has been affected by the rising prices of rare earth raw materials, the market may have concerns about the prospects of direct-drive technology. However, Cheng Xingzhi believes this is a temporary phenomenon. “Can't say that direct-drive technology is worse than double-feed technology. Many of them have their own advantages."

As water conditions in China are different from those in overseas, Siemens fans need to be further localized. Taking advantage of Shanghai Electric, China's largest domestic electrical equipment manufacturer, its parts procurement, sales network, and state-owned wind farm investors ( The relationship between electric power central enterprises and local electric power companies is also more advantageous.

According to the domestic fan industry rankings, the two wind power equipment with the largest installed capacity of wind turbines in the country are still Huarui Wind Power and Goldwind Technologies. Shanghai Electric has not yet reached the top three; and due to the high price of foreign wind turbines, Siemens, Vestas, Spain's Gemma and others have not even entered the top five of China's wind turbines. However, Siemens has been ranked first in the global large-capacity wind turbine market, such as more than 5 MW. With the gradual expansion of China's offshore wind turbines and large-capacity onshore wind turbine market, the two companies in the future also hope to snatch more high-tech orders through the introduction of Siemens technology.