VANCOUVER, March 15 /CNW/ - Xantrex Technology Inc. (TSX:XTX) today
announced that it has entered into an agreement to form a joint venture with
Shanghai Power Transmission & Distribution Co., Ltd. (SPTD), (CH:600627) a
member of Shanghai Electric Group (HK:2727) to design, manufacture and sell
solar and wind power electronics products exclusively for the renewable energy
market in China from a facility to be built in Shanghai, China.
"The establishment of this joint venture with a member of the Shanghai
Electric Group is an important milestone in creating a strong presence for
Xantrex in China," said Mossadiq Umedaly, Xantrex's Chairman. "The renewable
energy market in China, which has the potential to be very large, is integral
to our long-term growth plans, and Shanghai Electric is a resourceful and
strategically attractive partner."
Dinan Huang, President of the Shanghai Electric Group said, "We searched
extensively for the best partner and are very pleased to secure this joint
venture agreement with Xantrex. Together we will address the rapidly growing
renewable energy market in China, which complements our leading electricity
generation, transmission and distribution businesses."
The joint venture, to be owned 49% by Xantrex and 51% by SPTD, will be
known as Shanghai Electric Xantrex Power Electronics Co., Ltd. The total
initial investment will be US$20 million and the new entity will have a
registered capital of US$10 million. The joint venture is expected to receive
final approval from the Chinese government in the next few weeks.
China's new Renewable Energy law has made one of the largest
state-sponsored commitments toward renewable energy by requiring 15 percent of
the country's energy mix to be from renewable energy sources by the year 2020.
"This joint venture will provide Xantrex access to China's Renewable
Energy market, while ensuring that customers in China benefit from the quality
and reliability of our proven technology made in China by our joint venture,"
said Xantrex CEO, John Wallace.
"Based on technology licensed from Xantrex, the joint venture will
develop a power electronics and control product line as well as manufacturing
and service capability to meet the requirements for the rapidly growing solar
and wind market in China," concluded Liang Feng, President of SPTD.
About Xantrex Technology Inc.
Xantrex (www.xantrex.com) is a world leader in the development,
manufacturing and marketing of advanced power electronic products and systems
for the renewable, portable, mobile, and programmable power markets. The
company's products convert and control raw electrical power from any central,
distributed, renewable, or backup power source into high-quality power
required by electronic and electrical equipment. Headquartered in Vancouver,
British Columbia, the company has facilities in Arlington, Washington;
Livermore and San Diego, California; Elkhart, Indiana; Barcelona, Spain; and
Reading, England. Xantrex is listed on the Toronto Stock Exchange under the
ticker symbol "XTX".
About Shanghai Electric Group
Shanghai Electric (www.chinasec.com/en/index.html) is the single largest
Chinese enterprise engaged in the design, manufacture and sale of mechanical
and electrical systems equipment and general contracting projects. Its
businesses encompass more than ten industries and include Power Generation,
Power Transmission and Distribution, Electromechanical integration, Transport,
and Environmental Protection equipment.
About Shanghai Power Transmission & Distribution
Shanghai Power Transmission & Distribution (www.sptd.com.cn/emain.asp) is
a member of the Shanghai Electric Group specializing in manufacturing power
transmission & distribution equipment and high voltage & low voltage electric
apparatus and is one of the largest producers of power transmission &
distribution equipment in China. SPTD owns over 20 large and medium
enterprises, including joint ventures with large companies such as Siemens,
ABB, Schneider, and Areva.
Note that this news release contains forward-looking statements related
to Xantrex Technology Inc. Such statements reflect the current views of
Xantrex with respect to future events and are subject to risks and
uncertainties that could cause actual results to differ materially from those
contemplated in these forward-looking statements.
For further information:
For further information: Donna Clark, (604) 422-2601,