Aggreko Forms Joint Venture with Chinese Power Rental Company
Aggreko has formed a joint venture in China with power rental company Shanghai Yude.
The new company starts trading immediately as Shanghai Yude Aggreko Energy Equipment Rental Co. Ltd. The move is part of Aggreko’s long-term strategy to grow its business in China with an experienced and respected local partner.
Aggreko takes 21.5 percent equity in the new company and operations will be managed by Shanghai Yude in line with Aggreko’s standards and procedures.
Aggreko is the global leader in mobile, modular power and heating and cooling, and will initially provide diesel generators and associated range of ancillaries to supplement Shanghai Yude existing power equipment and UPS rental business.
“This mutually beneficial partnership with Shanghai Yude means we can bring reliable power and joint expertise to a rapidly growing market,” said Stephen Beynon, managing director, Aggreko Power Solutions. “The U.K. and China have strong commercial ties that go way back, and we are delighted to be able to work with a local partner that has extensive local experience and expertise. We look forward to continuing to provide reliable, uninterrupted and cost effective power to China in collaboration with a company that shares our values of making a difference and supporting growth in communities and industries across the globe.”
Yude was established in Shanghai in 2005 and has 45 employees. The company currently has more than 40 MW of power generation capacity and supports local industries, including events and construction. Aggreko is based in the U.K. and has more than 7,300 employees globally. It has been operating in China since 2008, and has a depot, and offices in Shanghai, which will be one of two facilities supporting the new company.
China currently is the world’s largest producer and consumer of electrical power.
The Yude Aggreko joint venture will initially provide power generation equipment in Shanghai, with scope to provide loadbank equipment and services as demand increases.
