Alstom in China Overview

Transcription

1 Alstom in China Overview Alain F BERGER 12/03/2007

2 Agenda Our position in China Page 3 Chinese context in power and transport Page 8 How do we do business in China? Page 17 Annexes Page 23 Alstom in China - P 2

3 One of the first western company in modern China 1958 : ALSTOM supplied China with electric and diesel locomotives 1979 : opening of first representative office in Beijing 1992 : establishment of first JV in Suzhou 1999 : formation of ALSTOM (China) Investment Co. Ltd. in Beijing 2007: Alstom is present in China through 11 Joint Ventures, 1 holding, 1 WOFE (Wholly Owned Foreign Company) and employs more than 3,300 people, of which only 100 are expatriate Alstom in China - P 3

4 A company associated with famous projects in China Hydro (25% market share) Three Gorges Right Bank (4 x 700 MW ) Three Gorges Left Bank (8 x 700 MW, all governing and computer control systems) Alstom in China - P 4 Nuclear (50 % market share for conventional parts) Ling Ao phase 2, 2 x 1000 MW Daya Bay and Ling Ao, 4 x 1000 MW Rolling Stock 60 EMUs (200 km/h) with CRC 180 «BoBo» freight locomotives (awarded) 168 metro cars for Shanghai Mass Transit Line 3 (Pearl Line)

5 Alstom entities in China, 2007 Total staff: 3,317 Transport 32% Corporate 1% Power Systems 61% ABP 505 employees TAH 1,319 employees QINGDAO employees Power Service 6% YONGJI employees SATCO 406 employees Power Systems PS Transport Holding New JV WUHAN 68 employees HK employees AOHAN 39 employees CASCO 282 employees SATEE employees ALSTOM China. Ltd 127 employees Strongwish 118 employees ATSL 301 employees Alstom in China - P 5

6 Be Chinese in China Create, expand and sustain a local industrial Chinese base Ex: Tianjin Alstom Hydro (TAH), 1995 JV between Alstom (99%) and Tianjin Power Equipment Manufactory A Chinese industrial base (1,319 employees) with a Chinese management committee (except one), and fully integrated in its Chinese environment TAH site TAH is able to supply both the Chinese and the international market Be a good Chinese corporate citizen Alstom implements in China the most stringent environmental and social guidelines Alstom ensures the respect of internal control and international audit rules Alstom in China - P 6

7 Agenda Our position in China Page 3 Chinese context in power and transport Page 8 How do we do business in China? Page 17 Annexes Page 23 Alstom in China - P 7

8 China key data 22 provinces 5 autonomous regions 4 special municipalities 2 special administrative regions Installed Capacity : 622 GW (2006) Railway lines : 76,000 km Heilongjiang Jilin Tibet GDP GDP per per capita* Alstom in China - P 8 Xinjiang More than 1000 EUR EUR EUR 10 RMB for 1 EUR Gansu Qinghai Inner Mongolia Ningxia Shanxi Hainan Liaoning Beijing Tianjin Hebei Henan Shaanxi Jiangsu Anhui Sichuan + Hubei Zhejiang Chongqing Jiangxi Hunan Yunnan Guizhou Fujian Guangxi Guangdong Shandong Shanghai 2006: GDP+10.7% 2,500 Bn USD 1.3 Bn p.

9 China key economic data 12,00% Annual GDP growth rate (Source: ADB) Amount of FDI, in Million USD (UNCTAD, 2006) 10,00% 8,00% 6,00% 4,00% 2,00% 0,00% (F) Contribution to GDP(Source: ADB, 2006) Government consumption 14% Net exports 4% Alstom in China - P 9 Private consumption 38% Gross domestic capital formation 44%

10 Chinese economical and political drivers Development Overall 9-10% growth Focus on the West and Central China North-East revitalization Stability Political Social Economic Reform Economic system Encourage private business and Chinese technology Administration reform Opening-up Increase trade Internationalisation of Chinese firms Selective FDI utilization Alstom in China - P 10

11 Chinese political and economical system Central Government Central Committee of Communist Party China (CCCPC) State Commissions (SASAC, NDRC) State Council Ministries Local Government and municipalities Municipal SASAC and DRC Communist Party Mayor Ministerial delegations in municipalities Foreign companies Customers Governmental entities SOE Foreign companies Partners Chinese partners (JV, subcontractors ) Chinese and foreign banks Alstom in China - P 11

12 A huge demand for power generation infrastructure Hydro 20% China installed base by technology Nuclear 1% Hydro 24% Nuclear 3% 2006 Thermal 79% 622 GW 2020 (F) Main energy demand growth drivers Strong GDP growth forecast Five year plan Highly competitive sourcing for export market Thermal 73% 1,250 GW Clean coal technology and hydro power at stake Alstom in China - P 12

13 The 11 th five years plan ( ) Power generation Master coal utilisation in power production Improve heat efficiency and reduce power producer coal consumption Develop other sources of clean energy Clean coal technologies (integrated gasification combined cycle, power-heat cogeneration plants and supercritical boilers) R&D for wind and solar energies Limit pollutive emissions Replace power plants <125 MW by larger fuel-efficient and less pollutive MW units Develop Environment Control Systems (ECS) 300 GW of power plants to be fitted with pollution control scrubbers by 2010 (less than 120 GW in 2006) Reduce annual sulphure dioxide emissions by 23% in 2010 (13 Mt in 2005) Alstom in China - P 13

14 Transport booming Main growth drivers Urbanisation rate : 43% in 2005 (60% in 2020) 57 cities>1 M Expressed need for individual mobility (public transports) Rural migrations (350 M people from now to 2020) Balancing spatial disparities (cities / suburbs; coastal / inner China) Cities with at least one metro line in operation Cities with their first metro line under construction Cities with a metro line in project at short term Chengdu Xi an Chongqing Pekin Tianjin Harbin Changchun Shenyang Dalian Nanjing Suzhou Wuhan Shanghai Ningbo Hangzhou Alstom s presence in the region SATCO CASCO Alstom in China - P 14 Guangzhou Shenzhen Hong Kong SATEE

15 The 11 th five years plan ( ) - Transport Rail network to increase by 30% (76,000 in 2006 to 100,000 km in 2020) Improved network s quality and upgraded equipment Faster passenger trains (12,000 km with speed above 200km/h) Electrification (upgrade 16,000 km) In km Net addition by type of line, in km (Source: Crédit Suisse, 2007) Double track Electrificated Total investment Bn Dedicated Passenger Lines Alstom in China - P 15

16 Agenda Our position in China Page 3 Chinese context in power and transport Page 8 How do we do business in China? Page 17 Annexes Page 23 Alstom in China - P 16

17 A complex country to understand China has a complex and very high speed evolving structure to catch up Administrative architecture (State council, Commissions, Ministries, Municipalities, Governmental entities, SOE ) Decision and approbation of projects processes Intertwined functions and responsibilities of the leaders Guan Xi and interpersonal networks Complex and evolving legal environment under which the Foreign companies act Alstom capitalizes on an intimate knowledge of China s working and evolving process and demonstrates strong adaptation abilities Alstom in China - P 17

18 A succesful 3-steps approach of the Chinese market 1 Export from Europe Export from European base to enter the Chinese market (with or without ToT) Diesel locos Daya bay nuclear power plant Alstom in China - P 18 From Belfort site to Tianjin port Daya Bay site

19 A succesful 3-steps approach of the Chinese market 2 CASCO JV with Chinese partners Formation of JV dedicated to the Chinese market Signal Ltd (1986) ALSTOM (Wuhan) Engineering & Technology (1997) ALSTOM Shanghai Transport Electrical Equipment Co. Ltd (SATEE), (1999) Shanghai Alstom Transport Company (SATCO), (1999) Alstom in China - P 19 SATCO site Xin Min Line

20 A succesful 3-steps approach of the Chinese market 3 Creation of JV and new industrial footprint to Chinese conquer the world market base for local & export Tianjin Alstom Hydro (TAH) 25% of the Chinese market in 2007 Supplies both the internal and the international market Alstom Beizhong Power (steam turbines) Wuhan boilers (?) Develop our sourcing capabilities for projects abroad Use Chinese export credit facilities ABP site near Beijing Alstom in China - P 20

21 Conclusion Objective: 1 billion sustainable activity per year in China Strengthen our market penetration through adequate partnering and selective acquisitions Establish China as a world industrial platform for Alstom Alstom in China - P 21

22 Agenda Our position in China Page 3 Chinese context in power and transport Page 8 How do we do business in China? Page 17 Annexes Page 23 Alstom in China - P 22

23 Alstom s main references in China - Power HYDRO POWER Hohhot/Pushihe Pumped Storage (8 x 300 MW) Longkou Hydro PP (4 x 100 MW) Heimifeng (4 x 300 MW) Tongwan (4 x 45 MW)) Xiaowan (6 x 780 MVA generators, with HEC) Baoquan/Huizhou/Balianhe PSP (16 x 306 MW) Three Gorges Right Bank (4 x 700 MW ) Three Gorges Left Bank (8 x 700 MW, all governing and computer control systems, Hubei) The Three Gorges POWER TURBO EQUIPMENT Guodian Hebei Longshan Power Station : 2 steam turbines generators of 600 MW each 4 supercritical 600 MW steam turbine generators for Pingwei power plant (Anhui) and 2 for Dabieshan power station Alstom in China - P 23 NUCLEAR POWER 2 x 1,000 MW steam turbine generators for Ling Ao phase 2 4 x 1,000 MW steam turbine generators for Daya Bay and Ling Ao nuclear power stations Ling Ao BOILERS & ENVIRONMENT CONTROL Baima Project in Sichuan, supplying China's largest 300 MW CFB Boiler Similar projects in Kaiyuan, Xiaolongtan of Yunnan and in Qinhuangdao of Hebei. Hua Yang: 600 MW supercritical CFB Boiler Waigaoqiao: 2 x 1,000 MW supercritical CFB Boiler TURNKEY PLANT 2 x 350 MW Hefei power plant in Anhui 4 x 360 MW Luohuang PP in Chongqin 3 x 660 MW Shajiao C in Guangdong 2 x 600 MW (supercritical units) Shidongkou No.2 Power Plant in Shanghai

24 Alstom s main references in China - Transport ROLLING STOCK 60 EMUs (200 km/h) with CRC 180 double locos Prima 500 «CoCo» freight locomotives (award) Eurobalises for MOR 168 metro cars for Shanghai Mass Transit Line 3 (Pearl Line) 68 metro cars for Shanghai Xin Min Line 120 metro cars for Nanjing North South Line Phase metro cars Shanghai Yangpu ligne metro cars Shanghai Line 1 Phase II 84 metro cars for Pudong Shanghai line 6 96 metro cars for Shanghai line 2 extension 1 SIGNALLING Shanghai Mass Transit Line 1, Line 3, Line 3 North Extension and Line 4 Beijing L2 (signalling) Beijing Airport link (signalling) Alstom in China - P 24

25