No. of Recommendations: 13
This is actually a respond to post #1774 from Larry discussing the energy problems in CHina.
As I have been travelling and busy catching up with the thousands of posts, I will make this a new thread.
Let me share with you my experience from the plants we are operating in Guangdong area.
In this area hundreds, if not thousands of new factories have been built and are still under construction -mostly in anticipation of 2005- thus increasing the power demand greatly.
In the process we were facing a lot of power shortages (note: the infrastructure is in place, at least in this area and for the existing factories) so the problem is really the capacity of the power plants.
To be less dependent on the public power grid we have decided to go ahead and build our own power plant from which we will even sell excess capacity into the grid.
As we are a private company and funding the whole project on our own, we are getting all the support from government.
The main reason being -my personal opinion!- that the government cannot build new power plants fast enough to cope with he increased demand.
Btw in a recent publication the Chinese Government announced the power shortage to be #1 priority to be solved in 2004!
So we will see a lot of new plants being build within the next years to get the capacity in line with demand.
Maybe a good time to look into stocks that could benefit from this..... !

Hope my insigths will give you guys a little better idea of what is happening here.

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