Xantrex and Shanghai Electric Sign Joint Venture Agreement for China Renewable Energy Market
Xantrex Technology Inc. announced that it has entered into an agreement to form a joint venture with Shanghai Power Transmission & Distribution Co., Ltd., a member of Shanghai Electric Group to design, manufacture and sell solar and wind power electronics products exclusively for the renewable energy market in China from a facility to be built in Shanghai, China.
"The establishment of this joint venture with a member of the Shanghai Electric Group is an important milestone in creating a strong presence for Xantrex in China," said Mossadiq Umedaly, Xantrex’s Chairman. "The renewable energy market in China, which has the potential to be very large, is integral to our long-term growth plans, and Shanghai Electric is a resourceful and strategically attractive partner."
Dinan Huang, President of the Shanghai Electric Group said, "We searched extensively for the best partner and are very pleased to secure this joint venture agreement with Xantrex. Together we will address the rapidly growing renewable energy market in China, which complements our leading electricity generation, transmission and distribution businesses."
The joint venture, to be owned 49% by Xantrex and 51% by SPTD, will be known as Shanghai Electric Xantrex Power Electronics Co., Ltd. The total initial investment will be US$20 million and the new entity will have a registered capital of US$10 million. The joint venture is expected to receive final approval from the Chinese government in the next few weeks.
China’s new Renewable Energy law has made one of the largest state-sponsored commitments toward renewable energy by requiring 15% of the country’s energy mix to be from renewable energy sources by the year 2020.
"This joint venture will provide Xantrex access to China’s Renewable Energy market, while ensuring that customers in China benefit from the quality and reliability of our proven technology made in China by our joint venture," said Xantrex CEO, John Wallace.
"Based on technology licensed from Xantrex, the joint venture will develop a power electronics and control product line as well as manufacturing and service capability to meet the requirements for the rapidly growing solar and wind market in China," concluded Liang Feng, President of SPTD.
