The State Grid of China group plans to investor US$10 billion by 2015 in the Brazilian electricity sector, the chairman of the Chinese state company, Cai Hongxian told Brazilian news agency Agência Estado.
Cai also said that the group, as well as consolidating its portfolio of assets in the power transmission segment, also planned to grow in the production segment by acquiring assets and carrying out new projects.
Expansion in Brazil is part of a more broad-ranging international growth plan, and the group has so far spent US$16 billion on acquiring stakes in companies in Portugal and Australia, for example.
In China, the company supplies electricity to 1.1 billion people and in 2012 it posted turnover of US$307.9 billion.
Brazil is currently the group’s largest international operation, with revenues of 632 million reals and assets worth an estimated 6.88 billion reals at the end of 2012, with 12 power transmission concessions and a 51 percent stake in another four.
The group entered the Brazilian market by acquiring seven transmission lines from Spain’s Plena Transmissora, and now manages a network of 6,700 kilometres of cables and is installing another 3,900 kilometres that it was granted through auctions.
Although it has the financial capacity to carry out projects on its own, Cai Hongxian said that the State Grid group planned to establish partnerships with Brazilian companies and has joined forces with Copel – Companhia Paranaense de Energia and Furnas – Centrais Eléctricas in the auctions that it won. (macauhub)