Alstom acquires a majority holding in Wuhan Boiler Company, a supplier of coal-fired power plants

Alstom has acquired 51% of the capital of the Wuhan Boiler
Company Ltd (WBC), a Chinese company listed on the Shenzhen Stock
Exchange, for  32.8 million after gaining the final
approval by the Chinese Authorities on 6 July 2007 and after
closure of the General Offer launched on 11 July 2007, in
accordance with current Chinese stock market regulations.

WBC has been an industrial partner of Alstom for over ten
years and currently generates a turnover of about 200
million per annum. Through WBC, Alstom will have access to the
Chinese market for boilers used in coal-fired power plants,
which is today the largest market in the world for these power
plants. The partnership with WBC will also provide Alstom with
a strategic industrial base for export. Ultimately, up to 35%
of boilers produced by WBC will be exported.

In addition to providing WBC with access to markets abroad,
Alstom will supply WBC with advanced technology, including
supercritical and ultra-supercritical pulverized coal
technology, circulating fluidized boilers and low-NOx burners,
as well as expertise in international management. A new
factory, fitted with the latest equipment, will be built on the
outskirts of Wuhan and the production will be transferred to
that location. With a covered area of 140,000 sq.-m, this new
factory will have the capacity to produce 600 MW super critical
and 1000 MW ultra-supercritical boilers as well as large
circulating fluidized bed boilers.

With Alstoms technology, WBC will be able to respond
to the Chinese markets increasing need for boilers while
addressing environmental protection issues, in particular by
cutting emissions and improving the efficiency of power
plants.

This investment strengthens Alstoms product portfolio
in the Chinese power market, where the group already produces
600 MW steam turbines and generators at one of its Chinese
plants near Beijing and hydro turbines and generators in
Tianjin.

Alstom now employs more than 8,500 people in China on five
major industrial sites in Beijing, Shanghai, Tianjin, Qingdao
and Wuhan.

Philippe Joubert, Alstom Executive Vice President and
President, Power Systems, said:
The acquisition of Wuhan Boiler Company is a
milestone in Alstoms global strategy both in China and
with respect to the deployment of our clean power solutions.
Combining the manufacturing capacity of Alstom Beizhong Power,
dedicated to steam turbines and generators, and Wuhan Boiler
Company, dedicated to state-of-the-art boilers, will allow
Alstom to offer the cleanest solutions for coal-fired power
plants in this part of the world. China has a pivotal role to
play in this context as a manufacturing, export and R&D
centre for Alstom in Asia.
 

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