Harbin Power Equipment Company said on Monday that one of its units has signed an agreement with General Electric to buy a 49 percent stake in a Shenyang subsidiary from GE for 160 million yuan ($23.87 million).
Harbin Power’s unit, Harbin Electric Machinery Company, would also invest 186 million yuan to cooperate with General Electric (China) to set up a wind power company in Jiangsu province.
HEC would have a 51 percent stake in the company, with GE China owning the rest.
American clean energy companies such as GE have been looking to cash in on China’s fast-growing renewables market, which has been projected to grow its wind power installed base between 108 GW and 132 GW by 2020, according to research by China Wind Energy Association.
China has been doubling its installed capacity every year for the past several years. The market is expected to display strong growth in 2010 and 2011, but it could develop at a slower pace due to overcapacity.
(US$1=6.703 Yuan)
