BEIJING, June 13 -- Alstom, the world's leading power and transport company, will increase its presence in China's power industry by expanding its manufacturing capacity, said Philippe Joubert, president of Alstom Power Generation.

    The company has officially opened Alstom Beizhong Power Co Ltd (ABP), a joint venture with Beijing Heavy Electric Machinery Works (BZD).

    The ABP joint venture is located in the Shijingshan District of Beijing. Investment in manufacturing facilities and equipment alone amounts to approximately 800 million yuan (US$100 million), according to a company statement.

    "It is the largest French-invested manufacturing project in Beijing, in which Alstom holds a 60 per cent share and BZD holds the remaining 40 per cent," said Joubert.

    Using Alstom's steam turbine and generator technology, the joint venture will be integrated into Alstom's worldwide manufacturing network and will foster the development of the power generation equipment manufacturing sector in China, said the statement.

    "The ABP joint venture represents a key step in extending Alstom's industrial business in China," said Joubert. "We expect ABP will quickly become one of our most important global manufacturing centres for steam turbine and generator equipment, serving both the dynamic Chinese thermal power market and the world."

    The new joint venture has reached agreements with big domestic power companies such as China Guodian Corporation and China Power Investment Corporation to provide equipment.

    "Apart from stepping up development in the thermal power sector, we will also pay more attention to other fields such as the hydropower business and nuclear power business," said Joubert.

    The company provided power generation equipment to the Three Gorges Project, the world's largest hydropower project.

    It delivered, on schedule, the first 700 MW runner for the Three Gorges Right Bank Power Station to China Three Gorges Project Corporation (CTGPC).

    The runner is a core component for the hydro turbine.

    With a height of 4.9 metres, a diameter of 10.9 metres and a weight of 460 tons, the runner is a part of Alstom's 2004 contract to supply four hydro turbine and generator units for the Three Gorges Right Bank. Altogether 12 such hydro turbine and generator units are to be installed at the Right Bank.

    "In order to provide the equipment, Alstom's subsidiary Tianjin Alstom Hydro Co Ltd has built a special runner workshop on the Three Gorges site.

    This workshop has made it possible to manufacture this type of runner with a new world record in terms of size," said Anders Maltesen, general manager of Tianjin Alstom Hydro Co Ltd.

    Alstom has established a long-term strategic partnership with CTGPC for the Three Gorges Project, supplying 8 out of the total 14 hydro turbine generator units installed at the Three Gorges Left Bank. These units have now been successfully put into operation.

    Besides thermal power and hydropower, in the nuclear power sector the generation equipment produced by Alstom has accounted for nearly 50 per cent of the Chinese market, said Joubert.

    "China is a strategic partner of Alstom, rather than a sales market. Alstom will make more effort in China's ambitious blueprint to develop its electric power," said Alain Berger, president of Alstom China.

    The company has built up a total of eight joint ventures in China.

    "The company, which experienced difficulties in past years, has made a successful turnaround toward profitability by achieving its recovery plan. Now the company is in a position to enter the profitable growth stage," said Joubert.

    "In the first nine months of this fiscal year our orders in China have reached 1.5 billion euros (US$3.9 billion)," Berger said.

    (Source: China Daily)