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GE expands its leadership role in China's gas turbine construction project

AZDEL : 26 February, 2006  (Company News)
Construction Project. After winning contracts last year for 13 gas turbine systems in phase one, GE now has been chosen to supply 20 of the 39 gas turbines included in the first two phases of this program, which is a centerpiece of China's efforts to meet its growing power requirements.
In addition, GE is currently involved in negotiations to provide four 9E gas turbines for phase three of the Gas Turbine Construction Program, representing 100% of the machines tendered for that class in this program.

When fully operational, the 20 combined-cycle units for phases one and two will produce a total of more than seven gigawatts of natural gas or LNG-fired power for China's grid.

GE's phase two projects include:

-- Three 109FA systems for the Jiangsu Jinling Combined-Cycle Power Plant, owned by Huaneng Power International Inc.
-- Two 109FA systems for the Guangzhou Zhujiang LNG Combined-Cycle Project, owned by Guangzhou Zhujiang Natural Gas Power Generation Co., Ltd.
-- Two 109FA combined-cycle systems for the Zhejiang Zhenhai Gas-Fired Power Generation Project owned by Zhejiang Zhenhai Power Generation Co., Ltd.

These new projects represent more than 2,500 megawatts of power. China National Technical Import & Export Corporation is the commercial agent for each project.

GE Energy has won the gas turbine bids in consortium with Harbin Power Equipment Co. Ltd. Five of the first 13 GE F-series gas turbines for phase one of the Gas Turbine Power Plants Construction Project already have been assembled and tested at HPEC's new manufacturing facility in Qinhuangdao, Heibei Province, China, and are being delivered to project sites ahead of the contract requirements.

GE Energy also has completed construction of a gas turbine parts manufacturing facility for its joint venture company, Shenyang GE Liming Turbine Components Company, Ltd., in Shenyang, Liaoning Province, and will begin manufacturing gas turbine components there in first quarter of 2005. GE is the majority owner of this joint venture company with its partner Shenyang Liming Aero Engines Company, Ltd.

In addition, construction has started on a new services facility in Qinhuangdao, Hebei Province, for the GE-HPEC-NTC Energy Service Company, Ltd, a joint venture formed in February, 2004 to provide repair and field services for power generation equipment in China including GE gas turbines. Repair service operations from this facility are expected to commence in September, 2005, though the joint venture company already is providing field service operations throughout China. GE is the majority owner of this joint venture with its partners HPEC and Nanjing Turbine Company, Ltd.

'The development of these new facilities is a major step in the cooperation we are developing with our manufacturing partners Harbin, Liming and Nanjing to serve China's rapidly expanding energy industry,' said John Rice, President and CEO of GE Energy. 'It demonstrates our long-term commitment and expands our local capabilities to provide technology and services that will produce the reliable power needed to support China's continuing growth and progress.'

Along with the new equipment orders, GE recently signed contractual service agreements to provide maintenance, parts and additional services for two of the first F technology power plants in China: a 700-megawatt co-generation plant in the Shanghai Chemical Industrial Park, and a 780-megawatt facility in Yuyao City, Zhejiang Province.

In addition to its gas turbine components and services joint ventures, GE has developed joint venture companies for oil and gas services and hydropower plant manufacturing. In support of these operations, GE Energy now has more than 1,000 employees in China, including technology support and supplier development teams located at GE's new China Technology Center, a state-of-the-art research and development facility in Shanghai.

Each of GE's 9FA combined-cycle systems generates 380 megawatts of electricity. GE's F-class fleet has compiled more than ten million hours of commercial operation, positioning GE Energy as an industry leader in advanced gas turbine technology experience.

GE Energy has been in China for more than 90 years, and has provided the country with 56 steam turbines, more than 160 gas turbines and more than 100 hydro turbines. In addition, GE Energy has been providing total engineering solutions to help Chinese customers improve the reliability and availability of their energy production and transmission assets.
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