GE, Harbin end China wind JV
US industrial giant GE and Chinese power equipment group Harbin Electrical Machinery have agreed to end a wind turbine joint venture they formed in September 2010, the latter told investors.
The US group and Harbin formed the Jiangsu, China-based JV – called HE-GE Wind Energy – to manufacture GE-designed turbines for the local market, including offshore machines.
Harbin held the majority 51% stake with GE owning the remainder, with the companies investing 186m yuan ($30.3m at current rates) and 179m yuan respectively, said a stock exchange filing by the Chinese partner.
Under the deal, Harbin also took a minority stake in GE’s Shenyang factory for about 154m yuan.
But Harbin told investors on the Hong Kong Stock Exchange the two will now unravel the JVs.
“In view of market developments and their respective development strategies, [Harbin] has negotiated with GE and both parties agreed to terminate the joint venture agreement,” it said.
Harbin will buy GE out of its minority stake in HE-GE Wind Energy, while GE would buy back the 49% share in Shenyang.
According to Harbin, preliminary valuations put the price of the HE Wind stake at 126.5m yuan, with the Shenyang share valued at 204.6m.
“Such price is subject to valuation by the asset valuation institute and confirmation from both parties,” it added.