GE Acquires Chinese Hydro Generation Supplier

February 04, 2003 by Jeff Shepard

GE Power Systems (Atlanta, GA) announced that it has acquired majority ownership of Kvaerner Power Equipment Co. Ltd. (Hangzhou, China), one of the leading suppliers of hydropower generation equipment in China. The transaction marks the largest acquisition by GE Power Systems in the People's Republic of China.

The new company will be named GE Hydro Asia Co. Ltd., and will continue to be a supplier of hydropower equipment in China and serve as a global platform for GE. GE will have 90 percent ownership while Hangzhou Industrial Asset Management Co. Ltd., Hangfa's parent company, will remain a minority owner with 10 percent. The new business will become part of global operations of GE Hydro, a division of GE Power Systems and a global leader in the supply of complete packaged hydro-power solutions.

"China has an extremely dynamic and promising energy market. We are committed to participating as a key player in the fast-growing energy industry through all activities, including sales, sourcing, investment, and research and development," said F.L. Leow, president of GE Power Systems China.