Bloomberg the Company & Products

Bloomberg Anywhere Login


Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.


Financial Products

Enterprise Products


Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000


Industry Products

Media Services

Follow Us

Shanghai Electric, Siemens Invest $226 Million in Wind Power

Don't Miss Out —
Follow us on:

Dec. 9 (Bloomberg) -- Shanghai Electric Group Co. and Siemens AG will invest 169.1 million euros ($226 million) to form two wind-power equipment joint ventures that will include all of the Chinese company’s business in the industry.

Shanghai Electric will invest 31 million euros for a 51 percent stake in Siemens Wind Power Turbines Shanghai, which designs and makes turbine components and will be renamed SmartPower Wind Turbines Shanghai Co., according to a Hong Kong stock exchange filing yesterday.

It will also invest 53 million euros for 51 percent of a new venture, Shanghai Electric Wind Energy Co., which will sell wind equipment. Siemens will invest 85.1 million euros and will own 49 percent stakes of each company.

Under the terms agreed to by the companies, Shanghai Electric will transfer all of its wind-power business to the two joint ventures, according to the filing. The assets to be transferred will include wind-power projects funded by 563 million yuan ($89 million) of proceeds from a private sale of A-shares in May 2010.

Shanghai Electric will also use 166.7 million yuan of surplus proceeds from the 2.2 billion-yuan share offering as working capital, according to the filing.

The stock fell 2.6 percent to HK$3.42 in Hong Kong trading, compared with a 2.7 percent drop in the benchmark Hang Seng Index. Its shares listed in Shanghai gained 0.4 percent to 5.58 yuan as the benchmark Shanghai Composite Index fell 0.6 percent.

The number of companies making turbines for offshore projects may fall to as few as five in a few years, executives at Siemens and Vestas Wind Systems A/S said last month. In 2010, four of the 10 biggest turbine suppliers were Chinese, according to BTM Consult ApS.

The agreements will let Shanghai Electric use Siemens technology as it seeks to develop offshore wind farms “fast and safely” and reach “the peak of the domestic offshore wind-power market,” according to a statement yesterday.

To contact the reporters on this story: Joshua Fellman in Shanghai at; Sally Bakewell in London at

To contact the editor responsible for this story: Bruce Grant at

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.