On February 17, 2012, the Production Execution System, Shanghai Electric (601727), jointly held a signing ceremony for the joint venture contract with Schneider Electric China to establish Shanghai Electric Building Energy Saving Co., Ltd. This marked a solid step forward in their collaboration in the field of green energy saving for building structures. Previously, Shanghai Electric and Schneider Electric China had signed a memorandum of strategic joint venture cooperation on August 24, 2011.
The main investors in Shanghai Electric Building Energy Saving Co., Ltd. are Shanghai Electric Group Co., Ltd. and Schneider Electric China Co., Ltd. In terms of registered capital, Shanghai Electric holds a 55% stake, while Schneider Electric holds 45%. Both parties have jointly formed a management team and technical team for the joint venture, with participation from Schneider Electric China.
The business strategy and development goals of the joint venture focus on energy-saving renovations of buildings in the Shanghai area, strengthening cooperation between both parties in market, technology, and management. Schneider Thermal Overload Protection will provide customers with energy-saving service solutions and related services for buildings, with the main business being energy-saving renovations of buildings, using energy contract management and engineering contracting as means. The company particularly emphasizes general contracting for large-scale building energy-saving projects or related renovations in the Shanghai area, providing customers with a full set of energy-saving services including: energy audits, project design, project financing, equipment procurement, project implementation, equipment installation and commissioning, personnel training, confirmation and guarantee of energy savings, operation and maintenance management of energy-consuming facilities, diagnosis and advisory consultation on energy conservation.
The main customer base of the joint venture focuses on energy-saving renovations of existing buildings such as government office buildings, large supermarkets, hospitals, schools, hotels, and large commercial office buildings, as well as the design of energy-saving solutions and related engineering business contracts for new buildings.
In terms of management, combining the advantages of both parties, the joint venture leverages Shanghai Electric's marketing expansion capabilities and project management experience, combined with Schneider's leading technology advantage in overall building solutions and system integration capabilities of building automation products, forming the core competitiveness and characteristics of the joint venture in the energy-saving renovation market of existing buildings. It explores new models, methods, and experiences in energy contract management, becoming a promoter and leader in implementing building energy conservation and emission reduction during the country's "Twelfth Five-Year Plan," effectively promoting and driving the process of energy contract management in the energy-saving renovation of existing buildings in Shanghai.
With strong support from the Shanghai Municipal Committee, Municipal Government, various district governments, and large enterprise groups, some administrative office buildings and large commercial building renovation projects have completed on-site evaluation research and the design of energy-saving efficiency improvement solutions. Meanwhile, Shanghai Electric Building Energy Saving Co., Ltd. has signed an intention agreement for a strategic cooperation partnership with Shanghai Pudong Development Bank (600000). In the future, this will effectively ensure the financial needs for energy-saving renovations of existing buildings through energy contract management. Both parties aim to achieve complementary advantages and win-win cooperation, establishing the "Electrical Building Energy Saving - Shanghai Pudong Development Bank" strategic alliance. Schneider Sensors participate in this initiative.
The strong alliance between Shanghai Electric and Schneider Electric in the field of energy efficiency improvements for buildings will significantly promote the pace of energy-saving renovations for buildings in Shanghai, aligning with the global "energy conservation and emission reduction" strategic demand, and contributing to achieving China's goal of reducing carbon dioxide emissions per unit of GDP by 40-45% by 2020 compared to 2005 levels.