Asset Management, Hydropower, Storage

Chinese Hydropower Acquisition for U.S. Company

Marking the largest acquisition by GE Power Systems in the People’s Republic of China, the company has acquired majority ownership of Kvaerner Power Equipment Co., Ltd (Kvaerner Hangfa) of Hangzhou, China, one of the leading suppliers of hydropower generation equipment in China.

Atlanta, Georgia – February 6, 2003 [] This transaction Kvaerner Hangfa, an equity joint venture established in 1995, is owned 61 percent by Norwegian Kvaerner Energy a.s. and 39 percent by Chinese State-owned Hangzhou Electric Equipment Works (Hangfa). It has been a global manufacturer supplying water to wire package of hydropower equipment up to 150 MW. The company has approximately 600 full time employees. The new company will be named GE Hydro Asia Co., Ltd. GE will have 90 percent ownership while Hangzhou Industrial Asset Management Co. Ltd, Hangfa’s parent company, will remain a minority owner with 10 percent. The new business will become part of global operations of GE Hydro, a division of GE Power Systems and a global leader in the supply of complete packaged hydro power solutions. “Kvaerner Hangfa has a great history of supplying quality equipment for the Chinese hydro market,” said Tracy Moore, President and CEO of GE Hydro. “The addition of GE Hydro Asia to our portfolio illustrates our ongoing commitment to provide cost-competitive and industry-leading technologies to our customers around the world.” “China has an extremely dynamic and promising energy market. We are committed to participating as a key player in the fast-growing energy industry through all activities, including sales, sourcing, investment and R&D,” said F.L. Leow, President of GE Power Systems China. “We continue to participate in major infrastructure projects, such as upcoming hydro projects like Three Gorges Phase II and several pumped storage projects, gas turbine power plant construction projects, the West-to-East Gas Pipeline project and the 2008 Beijing Olympics.” GE Hydro Asia Co., Ltd will continue to be a supplier of hydropower equipment in China and serve as a global platform for GE.