GE forming Chinese joint ventures to advance infrastructure

Atlanta, November 9, 2010 — Tremendous growth over the past decade has created a massive demand for energy to support China’s business and consumer lifestyles.

GE and State Grid Corp. of China, a Chinese power distributor and utility, announce plans for several joint ventures to address China’s growing energy needs and to electrify its vast transportation infrastructure.

These joint ventures, part of GE‘s plans to invest $2 billion in China through 2012, will play a vital role in supporting the country’s energy demand through the development of a smarter grid that will help achieve environmental and economical goals.

To tackle the country’s pressing energy needs and overcome challenges related to grid infrastructure, GE has signed two joint venture agreements with SGCC. GE will work with Wuhan Nari, a subsidiary of SGCC, to improve the efficiency and reliability of China’s electric grid by developing and implementing asset optimization technology solutions.

GE will also work with Electric Power of Shanghai, controlled by SGCC, to jointly acquire a 77.5 percent controlling stake in Shanghai Tianling Switchgear Co., a Shanghai-based company developing and selling green power distribution equipment.

This acquisition by GE and Shanghai Grid will reposition Tianling competitively in $10 billion global medium-voltage switchgear industry. The formation and operation of joint ventures are subject to certain conditions, including applicable governmental approvals.

The joint venture between GE and Wuhan Nari will focus on improving grid efficiency and reliability with asset optimization solutions. The venture marks China’s dedication to modernizing electrical infrastructure, which will help meet aggressive renewable energy targets by delivering a smarter, more automated network that will enable the integration of more clean, domestic energy.

The venture with Wuhan Nari follows GE’s work with the city of Yangzhou in April of this year to launch the first government sponsored smart grid demonstration center in China.

This new venture coupled with GE’s work with the city of Yangzhou will enable China’s grid to embrace more renewable energy, improve power reliability and increase network efficiencies — while transforming the way consumers use and pay for power.

To ensure China is able to deploy and deliver cleaner and more efficient infrastructure projects, such as high-speed rail and electric vehicle charging, GE and China Electric Power of Shanghai will jointly acquire a controlling stake in Tianling Switchgear, a Shanghai-based company making and selling power distribution equipment.

Tianling switchgear utilizes leading technology and holds a competitive position in the industry. With China’s increasing environmental awareness this competitive position will support GE’s growth plans both within China and Global IEC markets. The two primary products manufactured by Tianling are Cubicle Gas Insulated switchgear and Ring Main Unit switchgear.

The joint venture is intended to position Tianling Switchgear in the $10 billion global medium and low voltage switchgear market and expands GE’s electrical distribution products portfolio.

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