why ge's "made in china" strategy works - home appliances manufacturers in china
General Electric (GE)
To capitalize on China's $13 billion wind turbine market, it has once again turned to a "go out" strategy.
It's a fairly simple game plan but it works for GE-
Maybe there's other weight.
Hope to enter China or overseas markets.
The deal announced on Monday that it has set up a joint venture with Harbin Electric, a subsidiary of Harbin Electric power equipment, to manufacture and sell wind turbines for Chinese customers.
The new company will make GE
For the near-
Coastal and offshore use in China.
Harbin Electric will have 51% and GE 49% of the new company.
Harbin Electric will also acquire a 49% stake in the existing GE Shenyang wind power plant, which produces landbased turbines.
GE already has its own factory in China. -
Shenyang real estate that Harbin Electric Appliance is buying--
Sell its popular goods.
5 MW turbine for Chinese customers.
The announcement is unique as it marks GE's entry into China's offshore wind power market and is increasingly willing to work with host countries.
First of all, the wind turbine market in China is a manufacturer of Shangri-Lala.
That is, if they can successfully negotiate a tricky business environment there, ge ceo Jeffrey Immelt has complained about this in the past.
China is already the world's largest market for wind turbines and is expected to grow another 500% over the next decade to 150 gigawatts of installed capacity.
Overall, electricity demand in China is growing at a rate of 12% a year, GE said. No.
Obviously, GE wants and needs to be part of the action here.
But shipping wind turbines to Chinese customers from the United StatesS.
Even neighbors have problems and are expensive.
The wind turbine contains about 8,000 components, weighing 400 short tons.
Fuel and port costs have risen enough to make turbines overseas less meaningful than before. No.
A government of protectionism.
It is no secret that China is known for its difficult business environment.
Working with local partners is considered a way to circumvent these obstacles.
For GE, the joint venture not only allows it to get cheap labor in the country, but is more competitive when selling products to China.
If GE uses locally made and sold tortillas, whether you believe it or not, it makes the local
Sales local strategy is ideal for the US. S.
Even if the labor costs are higher here, the wind turbine industry is the same.
GE also used the strategy to grab market share in China and other industries including Europe.
GE Aviation and AVIC Systems agreed to launch 50-
50 joint ventures for commercial aircraft aviation electronic equipment, headquartered in China;
GE is announcing that it will invest $0. 45 billion to produce new gear-free turbine technology at factories in the UK, Norway, Sweden and Germany to expand the European offshore wind market.
GE Energy and Shenhua Group have agreed to form an industrial coal gasification joint venture to develop new clean coal technologies.
GE transport completed the first China Trunk Locomotive two years ago, which was assembled in China by its partner, seven tree Rock Locomotive Co. , Ltd.
Photos from Flickr user peruisay, CC month.