Xantrex and Shanghai Electric seal China renewable energy deal

A new manufacturing plant will be built in Shanghai to produce and supply the products. The joint venture will be called Shanghai Electric Xantrex Power Electronics Co., Ltd and will be owned 49% by Xantrex and 51% by SPTD. The initial investment will amount to $20 m. Approval from the Chinese government is expected for the next week.

China, which has a commitment to produce 15% of its energy from renewable sources by 2020, is starting to be seen by producers not only as a place to produce products at low cost, but also as an huge pool of consumers and it is therefore of utter importance for many companies to consolidate a good position in the market.

"This joint venture will provide Xantrex access to China's Renewable Energy market, while ensuring that customers in China benefit from the quality and reliability of our proven technology made in China by our joint venture," said Xantrex CEO, Mr John Wallace. "The renewable energy market in China, which has the potential to be very large, is integral to our long-term growth plans, and Shanghai Electric is a resourceful and strategically attractive partner", added Mr Mossadiq Umedaly, Xantrex's Chairman.

"We searched extensively for the best partner and are very pleased to secure this joint venture agreement with Xantrex. Together we will address the rapidly growing renewable energy market in China, which complements our leading electricity generation, transmission and distribution businesses." said Mr Dinan Huang, President of the Shanghai Electric Group.

For additional information:

www.xantrex.com

www.chinasec.com/en/index.html