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Firm powers ahead with expansion

By Cecily Liu (China Daily) Updated: 2015-08-11 07:40

Shanghai Electric aims to become key supplier for Chinese energy projects abroad, reports Cecily Liu in London.

Shanghai Electric, a power-generation equipment and machinery maker, is launching an aggressive overseas expansion strategy, to ride the wave created by Chinese energy firms.

Already present in more than 20 countries and regions, the company hopes to further expand in developed markets and become part of the supply chain for Chinese energy companies that are increasingly taking on global projects, said Zhou Xiaoming, brand manager of the company.

"Our equipment is already known in the industry to be world class, and as our market share in China is already large, we are eyeing opportunities globally to increase our revenue," he said.

Shanghai Electric has a long history, with its oldest subsidiary dating back to the 1880s. It is known for its innovative research and development, and has had several technological breakthroughs.

Its business focuses on supplying equipment for industries related to thermal, nuclear, wind and gas power. It has 70 projects globally.

Last year, the company was ranked 64th in the ENR.com global top 250 international contractors. Most of its overseas projects are in Southeast Asia, Africa, and the Middle East.

Zhou said it is an opportune time to engage with other regions, including Europe, as major Chinese nuclear, wind and gas power firms are taking on projects in these markets. Shanghai Electric, as a trusted supplier in the domestic market, can grab many fresh opportunities, he said.

The United Kingdom will soon become the first European nation to house a Chinese nuclear power plant. The deal came as a result of an agreement between France's EDF Group and two Chinese nuclear companies, China General Nuclear Power Group and China National Nuclear Corp, in 2013. The two Chinese companies will support EDF's project, Hinkley Point C, and in return EDF will support the two Chinese companies in the development of a new atomic plant at Bradwell B, the site of a partially decommissioned nuclear power station in the UK.

Shanghai Electric has a good opportunity to participate in the project as a supplier of nuclear equipment, Zhou said, although details of the deal are yet to be finalized.

He said the company is already a trusted partner to many Chinese nuclear enterprises for second-and third-generation technology, high-temperature reactors, fast reactors and other multiple reactor types, so it is natural for Chinese enterprises to choose Shanghai Electric for their supply chain in overseas projects.

"One key advantage we have is the completeness of our supply chain, so that we can provide all types of equipment that a nuclear plant would need. Another advantage is the high efficiency of our equipment," he said.

The equipment Shanghai Electric supplies to nuclear projects is wide-ranging, including nuclear island pressure vessels, steam generators, pressure stabilizers, inner components for reactors, control rod drive mechanisms, steam-turbine generators, main auxiliary equipment, heavy casting and forging, and thermal control instruments.

Gas turbines are another energy area Shanghai Electric is trying to internationalize, and the company reached a milestone last year when it bought a 40-percent stake in Italian engineering firm Ansaldo Energia for 400 million euros ($437 million).

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