With the additional investment, the company’s stake in SEP will increase to 40% from 33.7%. Shanghai Electric will remain the major stake holder with 60% interest in SEP through its control over three subsidiaries, including Shanghai Electrical Machinery Plant, Shanghai Turbine Plant and Shanghai Electric Power Auxiliary Equipment Works.
Reportedly, the additional capital invested by Siemens China would be used to acquire a few assets of Shanghai Lingang Heavy Equipment including land-use rights, and its building and power generation equipment in the Pudong New Area.
The company has assured to transfer its thermal power generation equipment and at least one set of gas turbine power generators to SEP, which would last at least 10 years.
Shanghai Electric Power, a power generation equipment manufacturing company, develops thermal power generation units, hydropower, and wind power generators.
