General Electric, XD Electric form China venture
General Electric forms joint venture with Chinese electrical grid company XD Electric
ATLANTA (AP) -- General Electric Co. said Monday it is launching a joint venture with Chinese company XD Electric Group to sell equipment for upgrading and automating electrical grids.
GE didn't disclose financial terms of the deal, but said it will take a 15 percent stake in XD Electric and will appoint a director to the company's board. The joint venture is expected to start operations in the fourth quarter.
The venture will sell equipment in China to help upgrade and automatic electrical grids there. GE said the Chinese government is planning on investing $600 billion in its electrical infrastructure over the next decade.
The joint venture will also sell electric grid equipment globally, GE said. Forming the joint venture is subject to regulatory approval.
Shares of GE fell 2 cents to close at $19.32.
