DETROIT (AP) -- General Electric Co. said Monday it will team with Harbin Electric Machinery Co. to make electricity-generating wind turbines for Chinese customers.
The deal will help GE compete in China's $13 billion wind-generated power market, which is the world's largest and is expected to grow 500 percent by 2020, GE said in a statement.
China's electricity demand is growing at 12 percent a year, and the government is supporting renewable energy policies, GE's statement said. The support played an important role in GE's decision to invest in the joint venture, it said.
GE will own 49 percent of the venture, while Harbin Electric Machinery will hold 51 percent. The new venture will make GE-designed wind turbines for near shore and offshore use in China, the statement said. Other terms of the deal were not disclosed.
Harbin Electric Machinery is a subsidiary of Harbin Power Equipment Co. The companies have been partners since 2004 on gas turbines in China. Harbin Electric was the first power equipment company in China in 1949, the statement said.
Shares of GE fell 16 cents, or 1 percent, to $16.50 in midday trading.
