French power and transport engineering firm Alstom is planning to expand its China business in coal-fired electricity generation and environmental protection, and set up a global production base.

"A base in China is the only way to compete across the globe," Shanghai Securities News quoted Philippe Joubert, president of Alstom's power division, as saying.

Alstom China chief executive officer Alain Berger said Alstom was in its second phase of market exploration in China, setting up local production bases before establishing export-oriented production bases here.

Alstom Beizhong Power (Beijing), which began operation on June 9, was Alstom's most important industrial base and its first in the field of coal-fired electricity in China, Berger said.

Alstom planned to set up its global generator turbine production center in China. The firm was also in talks with Chinese partners on new projects concerning coal-fired power and environmental protection.

Berger said orders from China totaled 15 billion yuan (US$1.9 billion) in the financial year from 2004 to 2005, accounting for one tenth of Alstom's global orders of the year.

Alstom has 24 percent of China's hydropower equipment market and 50 percent of the nuclear power equipment market. However, in the coal-fired electricity market, the world leader only takes about 10 percent.

(Xinhua News Agency June 13, 2006)