French engineering conglomerate Alstom has strengthened its position in the Chinese power sector through the acquisition of Qingdao Sizhou. The Chinese company makes boiler auxiliaries, with a strong focus on bottom ash handling systems and the related service business - a critical element of the coal-fired power generation process.
Alstom said that Sizhou’s engineering, service and manufacturing facilities, together with its sales network, will allow the company to expand its presence in the Chinese boiler, environmental products and services market. The new company, Alstom Sizhou, will also provide a low-cost manufacturing base for Alstom’s global supply chain.
Alstom said that Qingdao Sizhou is a major player in the power service business in China. The company, based in the Shandong province, has long-term relationships with the top Chinese utilities and over 500 power plants use Sizhou’s equipment. The company had sales of over E50 million euros in 2006.
Alstom said that the acquisition represents a major step forward in the company’s strategy to become a full local service provider, supporting the market through a sales network, supply chain and field service resources, all of which are located close to the customers.
Walter Graenicher, president of Alstom’s power service sector, said: Sizhou’s leading market position and developed customer base offer us a unique opportunity to build a presence in the rapidly growing Chinese power service market.