General Electric in strategic alliance with China XD Electric Co
07 Sep 2013
US diversified conglomerate General Electric (GE) yesterday entered into a strategic alliance with China XD Electric Co to tap the country's vast electrical infrastructure market.
In May, GE had invested $546 million for a 15-per cent stake in the Xian, Shaanxi-based company, making it the second-largest shareholder after parent company China XD Group, which holds 51.10 per cent.
XD Electric, also known as Xian XD, has also agreed to form a joint venture with GE to distribute the electrical grid solutions of GE to XD Electric's local customers.
The alliance between the two companies is a crucial step for China XD Electric in implementing its "going abroad" strategies, said Zhang Yalin, chairman of the company.
XD Electric will benefit from GE's advanced management experience to boost the company's "soft power" in its efforts to expand globally, he added.
Dan Janki, president and CEO of GE Energy Management, said cooperation between the two sides will enable them to offer solutions to China's rapidly growing transmission and distribution industry. The cooperation will also sharpen GE's competitiveness in the Chinese market, he said.
Formed in 1986, China XD Electric is one of China's biggest power transmission and distribution engineering contractors.
Its products and technologies have been exported to over 40 countries and regions, including like Germany, US, Singapore and Hong Kong Southeast Asia, South Asia the Middle East and Africa.