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.
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”.