China Valves Technology, a metal valve manufacturer, has signed a strategic cooperation frame agreement with Dongfang Electric Corporation, which is reportedly the largest manufacturer of power generating equipment and contractor for power station projects in the world.
In what is said to be the first-ever strategic relationship between a major Chinese valve manufacturer and a leading Chinese producer of power generating equipment, China Valves and Dongfang Electric have agreed to establish a joint research and development center for the development of high-end valves that Dongfang Electric currently imports. In addition the two companies will also enter into a full service agreement. Under the agreement, China Valves will supply Dongfang Electric with custom design services for specialty valves required in its power generation projects, manufacture the valves, and install and maintain them, providing Dongfang with a complete suite of valve-related services.
China Valves has already supplied valves worth approximately USD6 million to Dongfang Electric in 2009, and it expects this strategic alliance to increase orders significantly. China Valves anticipates its first orders from Dongfang Electric under this agreement in the first quarter of 2010.