Russia's UEC, China's New JCM Group agree to cooperate on gas turbine equipment

MOSCOW. July 8 (Interfax) - Russia's United Engine Corporation (UEC) and China's New JCM Group Co., Ltd have signed an agreement to cooperate on the production, delivery and servicing of gas turbine equipment, UEC reported on Tuesday.

"State corporation Rostec's United Engine Corporation and Chinese company New JCM Group Co., Ltd signed a strategic agreement on cooperation in the areas of production, delivery and servicing of gas turbine equipment at the ninth Russia-China Expo," UEC said in a press release.

The companies agreed to supply UEC gas compressor units with the Chinese company's equipment, the release said.

"The agreement provides for the possibility of localizing production of Chinese components at UEC Engineering production facilities, as well as organizing servicing and repair of gas turbine equipment, including overhauls of foreign-made gas turbines," UEC said.

The companies also discussed prospects for integrating Chinese gear units into Russian gas turbines.

"The development of strategic partnerships with leaders of Chinese industry is an important step in creating innovative products to enter the rapidly growing markets of Central Asia and the Middle East," UEC Engineering CEO Andrei Vorobyov was quoted as saying in the press release.

Vorobyov told Interfax that the partnership was primarily a way to accomplish the task of entering foreign markets.

"The main thing for us is to enter foreign markets with a joint product [with Chinese producers]," he said.

Vorobyov also said that the two technological leaders, Russia and China, should keep the BRICS market in mind.

"We are obliged to offer an innovative, competitive product to this market and replace the foreign equipment that is traditionally sold there. So, our partnership holds good prospects," he said.

The Russia-China Expo is taking place in Yekaterinburg from July 7-10.