March 28 (Bloomberg) -- Siemens AG agreed to work with Huaneng Power International and Shanghai Electric Group as Europe’s biggest engineering company tries to sell more clean-energy technologies into the Chinese market.
The companies signed a memorandum of understanding to cooperate in advanced gas turbine and steam power plant technology as well as the modernization and upgrade of steam turbine units and wind power, Munich-based Siemens said in an e-mailed statement today. The companies announced the agreement as Chinese President Xi Jinping met with German Chancellor Angela Merkel in Berlin.
Siemens Chief Executive Officer Joe Kaeser, who took over in August after a series of missed profit goals, is trying to boost the company’s business in emerging markets. He met with Russian President Vladimir Putin in Moscow earlier this week to discuss high-speed rail and energy projects despite attempts by governments in Europe and the U.S. to isolate and impose sanctions against the Russian government following the annexation of Crimea.
Siemens has offices in more than 30 Russian cities, supplying power equipment, high-speed trains and medical devices. In China, the German company has been working since the early 1990s with Huaneng Power, which owns power plants in 19 Chinese provinces, municipalities and autonomous regions.
China was Germany’s third-biggest foreign trade partner last year, with 140 billion euros ($192 billion) in turnover passing between the two countries, according to the Federal Statistics Office in Wiesbaden. China ranks fifth among importers of German goods and is the second-biggest exporter to Germany. Siemens today declined to give financial details about the cooperation with Huaneng Power and Shanghai Electric.
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