SPX Corp. (NYSE: SPW) and Shanghai Electric Group Co. Ltd. said the companies formed a new joint venture to supply products to the power sector in China and select global opportunities. The joint venture agreement is between Shanghai Electric Group and an SPX subsidiary in China.
Under the terms of the agreement, the joint venture will be called Shanghai Electric -SPX Engineering & Technologies Co., Ltd. and will be headquartered in Shanghai, China with a branch office in Beijing. Shanghai Electric will own a majority 55 percent of the joint venture and an SPX company the remaining 45 percent. A jointly appointed management team will run the joint venture.
SPX entities and Shanghai Electric have a pre-existing working relationship dating back to 1998, and have recently collaborated on dry cooling system orders and other China power generation project bidding opportunities. The new entity will focus on supplying dry cooling technologies for power plants, which include air cooled condensers and indirect dry cooling tower (IDCT) systems, as well as moisture separator reheaters (MSRs).
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