The hottest Ge 12.5 billion yuan high and low volt

GE's 125million yuan high and low voltage electrical equipment made in Chongqing has initially taken shape in the central and western regions.

the central and Western markets are increasingly favored by the world's top 500 enterprises. Yesterday (April 24), General Electric Company (GE) of the United States signed a cooperation agreement with Chongqing electromechanical Holdings (Group) to invest 125million yuan to officially build a high and low voltage electrical equipment manufacturing base in Chongqing

"daily economy" learned that as early as 2011, Ge signed a memorandum of cooperation with Chongqing Electromechanical, aiming at the distribution equipment demand market of at least 30billion yuan brought by the development of Chongqing rail transit. For the reason why the cooperation has been stranded for two years, GE and Chongqing electromechanical said that it was due to too many preparations

it is worth noting that in the past two years, GE has set up innovation centers in Chengdu and Xi'an respectively to devote themselves to the application research and development in the fields of medical treatment and coal chemical industry. This move to jointly manufacture high and low voltage electrical equipment with Chongqing electromechanical machinery and electrical equipment has also led the market to speculate that GE will form a strategic pattern with Chongqing as the manufacturing center and Xi'an and Chengdu as the R & D center in the western region in the future

125 million yuan to build a high and low voltage electrical equipment base

according to the agreement, GE and Chongqing electromechanical are expected to invest 125 million yuan to build a new high and low voltage electrical equipment manufacturing base in Longxing Industrial Park, Liangjiang New Area. The base covers an area of 23000 square meters for production and scientific research, and construction began in the second half of this year. It was officially put into operation in 2014, and is expected to achieve an annual output value of 500million yuan after reaching the production capacity

Bob Gilligan, Global CEO of Ge industrial systems, who attended the signing ceremony, said that as the economic development engine of central and Western China, Chongqing is the strategic hub for GE industrial systems to promote its business in central and Western China. GE has advanced manufacturing technology and management concept in the field of high and low voltage electrical equipment, and Chongqing Electromechanical is familiar with the market situation in the southwest region. The cooperation between the two sides can achieve twice the result with half the effort

the daily economy learned that as early as July 2011, GE and Chongqing electromechanical signed a joint venture contract to establish a Sino foreign joint venture in Chongqing Liangjiang New Area to produce power distribution equipment for the construction of Chongqing rail transit

according to the report of Liangjiang New Area, the opening and operation of Chongqing Rail Transit Line 1 became the direct reason for the cooperation between the two sides at that time. According to reports, in 2010, Chongqing's rail transit planning was adjusted. The total mileage of the track increased to 700 kilometers, the total number of stations exceeded 350, and the total investment greatly exceeded the original plan of 150 billion yuan. As the infrastructure in the construction of rail transit, the demand market scale of distribution equipment is as high as 30billion yuan

after the completion of the Chongqing joint venture, all the power distribution equipment required by Chongqing rail transit will be provided by the joint venture. Liaoshaohua, vice president of Chongqing Electromechanical group, said

in fact, Ge is not the first world leader to establish a distribution equipment base in Chongqing. According to public information, Chongqing ABB Transformer Co., Ltd. is ABB's largest transformer production base and insulator manufacturing center in the world, and has 800 kV high-voltage DC transformer technology; Less than a year after hollywell opened a representative office in Chongqing in 2006, he announced that he would work with Chongqing to build a western innovation center, and put the first global engineering service center of its process control department in China in Chongqing

some analysts believe that compared with its competitors, GE's strategy to seize the Chongqing market lags behind. In this regard, Bob Gilligan believes that the time to enter is just right. The products produced by GE, abb and hollywell are different, and there is no competitive relationship

the strategic pattern of the central and western regions is beginning to appear

various signs show that the central and western regions are increasingly valued by GE and other world first-line enterprises

in November 2010, GE announced that it would invest more than $2billion in the Chinese market in three years for R & D, coating innovation and the establishment of new joint ventures. In May 2012, the world's first innovation center, GE China Innovation Center, was completed in Chengdu. In July, GE China Innovation Center (Xi'an) was completed

the innovation center integrates R & D, customer experience, service, training and operation, and will further help China's economic transformation and sustainable development strategy. It mainly uses sintering methods and tends to innovation in the field of applied technology. Said Huang Keqiang, CEO of GE Energy Management Group Industrial Systems Asia Pacific

the joint manufacturing of high and low voltage electrical equipment with Chongqing electromechanical Co., Ltd. also makes the market speculate that GE will form a strategic pattern in the western region in the future, with Chongqing as the manufacturing center and Xi'an and Chengdu as the R & D center

however, Bob Gilligan does not agree with this speculation. The innovation centers in Xi'an and Chengdu are mainly applied research, which is based on market services. The joint venture in Chongqing has this feature in essence, which is also its future development direction

it is understood that in the joint venture established by the two sides, Chongqing electromechanical holding 51% and Ge holding 49%. Liaoshaohua admitted that in the two-year negotiation, there have been nearly 30 negotiations before and after, and it is not easy for Chongqing Electromechanical to get the controlling stake

what we prefer is that this cooperation can help enterprises transform and upgrade, which is conducive to our 100 billion electromechanical strategy. Liao Shaohua said

the daily economy learned that Chongqing's electromechanical performance was poor in 2012. Compared with the same period in 2011, the net profit decreased by 40.22% to 441million yuan; The gross profit is about 1.595 billion yuan, down 18.6%. The gross profit margin is that the pressure sensor can be directly installed on the actuator by 15.1%; The operating revenue is 42.6 billion yuan, which is still a certain distance from the previously scheduled target of 50 billion yuan