State Grid expects huge synergies from 450bn yuan investment

Restructuring that will see company jettison some units hopes to strengthen high-voltage network

by Yang Ying and Xu Jiangshan
State Grid expects huge synergies from 450bn yuan infrastructure investment
State Grid expects to see 1.3bn yuan of social investment from infrastructure projects. Photo: Handout

(ATF) – China’s power distributor State Grid Company expects to see huge synergies from an initial 450 billion yuan ($64.28 billion) infrastructure investment plan.

The Beijing-based company said the social investment that would be generated by the cash injection would be at least 900bn yuan in the medium term.

In an interview with China Electronics News Agency (CENA), State Grid spokesman Zhang Zhengling said the total overall social benefit would reach 1.3 trillion yuan. 

Among the projects targets would be extra-high voltage infrastructure, which would cost 181.1bn yuan. That would can effectively drive social investment of 360bn yuan and an eventually 541.1bn yuan.

Start Grid, the world’s biggest utility, is restructuring its operations, jettisoning its manufacturing and real estate businesses to concentrate on its core competencies, Asia Times Financial reported. The move will involve the divestment of units including Luneng Group and State Grid ZTE Corporation.