Shanghai Electric buys 40% of Ansaldo for $551m

Chinese power company Shanghai Electric is to buy 40 per cent of Italian energy firm Ansaldo Energia for €400m ($551m).

At the same time, the two companies are to set up two joint ventures to manufacture gas turbines for Asian markets and also form a research and development centre in Shanghai. Ansaldo

The transaction, which is expected to be closed by the end of the year, marks the largest Italian-Chinese deal and Ansaldo said it “could represent a major benchmark of economic relations between the two countries”.

The agreement opens the door for Ansaldo to enter the Chinese gas turbine markets, which the Italian firm says represents 50 per cent of the global market and is rapidly expanding.

In a statement today, Ansaldo said that it expected the deal to result in a 20 per cent increase in turnover in the mid- to long term, three-to-four units a year in new turbines at its plant in Genoa and the creation of 500 new jobs.

And in a further step into Asia, Ansaldo has signed a partnership with Doosan Heavy Industries of South Korea for the development of a new gas turbine for the US, Brazilian, Saudi Arabian and South Korean markets.

Ansaldo said that the deal would, over the next seven years, see it “establish a presence in 100 per cent of the markets for gas turbines” and result in the recruitment of 100 new engineers.

It added that the Shanghai Electric and Doosan deals laid the “foundations for Ansaldo to achieve a global leadership position in the gas turbine industry”.

Did You Like this Article? Get All the Energy Industry News Delivered to Your Inbox

Subscribe to an email newsletter today at no cost and receive the latest news and information.

 Subscribe Now


Maximizing Operational Excellence

In a recent survey conducted by PennEnergy Research, 70% of surveyed energy industry professional...

Leveraging the Power of Information in the Energy Industry

Information Governance is about more than compliance. It’s about using your information to drive ...

Reduce Engineering Project Complexity

Engineering document management presents unique and complex challenges. A solution based in Enter...

Revolutionizing Asset Management in the Electric Power Industry

With the arrival of the Industrial Internet of Things, data is growing and becoming more accessib...