AREVA Takes Further Action to Reinforce Its Presence in China
Following the recent opening of its new gas-insulated switchgear factory last month in Suzhou, China, AREVA’s Transmission and Distribution (T&D) division has announced additional actions to increase its market share in the country.
The division has just signed an agreement to form a 50/50 joint venture* with the Chinese company, Sunten Electric Co. Ltd., a leading manufacturer of distribution
transformers, whose 2006 annual sales reached circa €120 million. Through this joint venture, AREVA T&D will become first in China for dry-type transformers, Sunten Electric Co. Ltd.’s specialization.
AREVA T&D has also established a partnership with the China Electric Power Research Institute (C-EPRI), a leading Chinese organization specialized in electrical
technologies. Under the agreement, C-EPRI will be the official licensee for AREVA T&D’s H-400 high-voltage direct current (HVDC) Thyristor valves in China. The partnership will enable AREVA T&D to enter the fast-growing domestic HVDC market.
The T&D sector in China represents 24% of the worldwide transmission and distribution market. AREVA T&D’s turnover in China, where demand for T&D equipment is growing strongly, should significantly contribute to the division’s objective
to reach €5 billion in sales by 2010.
Philippe Guillemot, Chairman and CEO of AREVA T&D and member of the AREVA Group’s Executive Committee, said: “Our goal is to reach €1 billion in order intake in China by 2010 through strong organic growth and targeted acquisitions and partnerships. Our agreements with Sunten and C-EPRI are key milestones towards achieving this objective.”
* The joint venture is subject to the approval by Chinese authorities.