Power industry to have biggest joint venture
By Li Fangfang (China Daily)Updated: 2006-12-18 09:19 France-based Schneider Electric, one of the world's leading providers of power distribution and industrial control solutions, signed a framework agreement yesterday with Delixi Group for strategic co-operation in a new joint venture in Wenzhou, East China's Zhejiang Province.
According to Jean-Pascal Tricoire, chairman and chief executive officer of Schneider Electric global, China is his company's third largest market.
"I believe in two years China will be our second biggest market, surpassing France, and only behind the United States," he said.
The China market now contributes 8 per cent of the total global turnover for Schneider Electric.
The new venture, named Delixi Electric Ltd, which will be incorporated in Wenzhou, is dedicated to the manufacturing, marketing and distribution of low voltage products. Operations will begin once certain conditions and regulatory approvals are met.
The products will be manufactured and sold under the Delixi brand and distributed by its network of 1,500 dealerships around the nation.
Both sides, however, declined to disclose investment details.
"We will reveal the figures after the registration of the facility," said Hu
Chengzhong, president of Delixi Group.
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