The joint venture of French firm Alstom with Chinese major Shanghai Electric for manufacturing power equipment will be formed in a year, with factories in four countries, including India.
“We will start the company (joint venture) in the next 12 months,” said Alstom’s executive vice-president, Philippe Joubert. The 50:50 joint venture will have manufacturing facilities in the US, Germany, India and China.
At inception, the combined order book of the planned joint venture is expected to be ¤2.5-3 billion, he said. Both have entered into a preliminary pact for setting up the joint venture to combine their boiler businesses.
Alstom has also set up a manufacturing facility for hydro power equipment in Vadodara. It will manufacture bearings for medium to large-size hydro power projects, including large turbine and generator thrust bearings, guide bearings and shaft seals, to cater to the sector both in India and abroad.
