Jan. 11, 2001—The Siemens Power Transmission and Distribution Group with its headquarter in Erlangen, Germany, has formed a joint venture with Shanghai Hua Tong Switchgear Works, a Chinese manufacturer of gas-insulated switchgear (GIS).

Siemens and Hua Tong have contributed EUR 10.6 million; Hua Tong has a holding of 49 percent, Siemens Ltd. China of 51 percent. The aims of the joint venture are construction and sales of gas-insulated switchgear (up to and including 500 kV) in China.

The joint venture is based in Shanghai, Hua Tong’s GIS manufacturing location. In the context of this joint venture the Chinese GIS works will in future no longer manufacture its customary products, but only gas-insulated switchgear of Siemens design. Production is scheduled to begin in April 2001.

For the first time in its history Siemens Power Transmission and Distribution is setting up a manufacturing plant for such switchgear outside Germany. Customers on the Chinese market will thus have access to this technology (amongst the most modern in the world).

The new joint venture’s tasks will include sales, marketing, engineering, assembly and testing of gas-insulated Siemens high-voltage switchgear from the 8DN8 and 8DN9 ranges, with voltage ratings of 145 kV and 252 kV, based on components manufactured by Siemens in Berlin.

Hua Tong is the largest switchgear manufacturer so far to join forces with Siemens. The proportion of in-house manufacture of switchgear components is scheduled to rise to roughly 50 percent over the coming 5 years. Hua Tong belongs to the Shanghai Electric Group Corporation (SEC), which already has seven joint ventures running with Siemens. Since 1993, medium-voltage switchgear has also been produced by Siemens Switchgear Co., Ltd., Shanghai.

For Siemens, China is the largest growth market for products and systems from the Power Transmission and Distribution Group. The volume for gas-insulated high-voltage switchgear amounts currently to about EUR 250 million p.a., representing one of the biggest single markets in the world.

The new joint venture opens up new business opportunities; local power supply corporations can now be served with locally manufactured high-tech products. The build up of China�s power supply infrastructure is calling increasingly for high-tech products from all sectors. Insiders rate the technology of gas-insulated switchgear to be roughly 20 years behind the state of the art.

The Siemens Power Transmission and Distribution Group with headquarters in Erlangen, Germany, ensures as a product supplier, system integrator and service provider reliable transmission of electrical energy from the generating plant to the consumer. Conventional products such as switchgear and transformers nowadays account for only about half of the Group�s sales.

More than 30 percent now comes from products and systems concerned with electronics, information technology, communications and software; the figure covered by service business is already as much as 20 percent.

With a workforce of about 19,800 and 50 manufacturing locations around the world, Siemens Power Transmission and Distribution achieved according to preliminary calculation in the 2000 fiscal year (ending September 30) sales of 3.3 billion EUR and Earnings Before Interest and Tax (EBIT) of 149 million EUR.

Further information about this Siemens Group under https://ev.siemens.de.