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Shanghai Electric Group has agreed to pay 400 million euros ($555 million) for 40 percent of Ansaldo Energia that makes utility-size gas and steam turbines. Ansaldo – once a licensee of Siemens V series – supplies gas turbines including for low calorific value gases. It introduced special compressor sections and a combustor design to burn the gases.
The deal, announced on Thursday at a ceremony with Italian Prime Minister Matteo Renzi, will gives Ansaldo access to Chinese markets and the Shanghai Electric access to high-end equipment technology. Shanghai Electric will buy the stake from government-backed private equity fund Fondo Strategico Italiano (FSI).
Under the agreement, Ansaldo Energia and Shanghai Electric will set up two joint ventures in China to produce gas turbines for Asia, which represents 50 percent of the world market, as well as a research and development centre in Shanghai.
Ansaldo has signed a partnership with Doosan Heavy Industries of Korea for the further development of AEN technology. AEN will undertake an R&D technology cooperation initiative with the Korean group to develop a new gas turbine for countries with 60 Hz grids (North America, Brazil, Saudi Arabia, South Korea). The project will receive partial financing from the South Korean government.