Comments
Alstom Projects India said on Thursday that its French parent Alstom and Chinese Shanghai Electric Group have signed an agreement to set up a joint venture company that would supply boilers and spare parts to power plants.
“Alstom and Shanghai Electric Group have signed a letter of intent for the creation of Alstom—Shanghai Boilers Co, a 50:50 joint company combining both partners’ activity in the boiler market for power plants,” Alstom Projects India said in a filing to the Bombay Stock Exchange (BSE).
The boiler assets held by the Indian subsidiary, Alstom Projects India Ltd, will be demerged into a new legal entity that will be held by the joint company, subject to receipt of necessary corporate and regulatory consents, it said.
The joint venture would have a combined sales of about 2.5 billion euros, it said, adding the JV would supply new boilers and spare parts for services.
The company would be registered in Shanghai and its operational headquarters would be in Singapore.
Alstom and Shanghai Electric expect to set up the joint venture company once their agreements will be finalised and after completion of social and regulatory processes, it added.
For the purpose of joint venture, Alstom intends to execute a carved out plan by first contributing its boiler business into a new legal entity.
“The creation of Alstom—Shanghai Electric Boilers Co would be the first global, worldwide, project between Alstom and a Chinese partner. With a joint company dedicated to boilers, a critical component of coal fired power plants, we should create the conditions of a “win—win” association with Shanghai Electric, a long time partner of Alstom.
For Alstom, Alstom—Shanghai Electric Boilers Co would be an essential asset to develop the company’s position in China, the world’s largest market and to strengthen our leadership in the market for turnkey coal fired power plants worldwide, with a well established reputation for power efficiency and environmental protection,” Alstom Chairman and CEO, Mr Patrick Kron, said.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.