Westinghouse, Shanghai Electric forge joint venture agreement.
U.S.-based Westinghouse and Shanghai Electric Corp., a leading Chinese manufacturer, have signed a joint venture agreement, extending Shanghai`s licensing agreement for Westinghouse`s power generation technology. Shanghai Electric`s Turbine Generator Works holds 30 percent of China`s growing power generation market, which is expected to place more than 200 GW of new equipment orders in the next decade.
Westinghouse will invest approximately (US)$100 million in Shanghai Electric to acquire a 35 percent stake in its key power-related operations. The agreement will also increase Shanghai`s manufacturing capacity by 25 percent, allowing the firm to accept orders up to 3,000 additional MW of equipment in 1995 and 1996. All additional capacity will be used to produce Westinghouse equipment.