China's hydropower company moving to Brazil's high-end industrial value chain

To realize investment goals, the companies should focus on subsequent operation and management.

Ilha and Jupia have been facing both technical problems, such as engine deterioration, and external challenges from the market, environment, labor polices, among others.

To improve current situation, the CTG should make efforts in modifying technologies and optimizing production processes to provide clean energy for Brazil's economic and social development.

Aiming at high end of brazil's value chain

Last year was a year of recession for Brazil's economy, but the country also witnessed a surge in M&A by foreign companies, with 285 significant deals sealed, and foreign direct investment reaching $70 billion.

With Brazilian companies facing financing difficulties, the government needs to gradually lift investment restrictions on foreign enterprises, which would offer a win-win solution for the survival of Brazil's domestic companies, and help attract foreign investment, according to a recent report by Brazil's Itau bank.

The company's credit advantage, strong financing capacity and leverage, and strength in construction and operation will also help Chinese enterprises expand their business in Brazil's hydropower industry, pushing them to the high-end of its value chain.

The CTG's successful acquisition will further motivate China's entire hydropower industrial chain to go global, including motor manufacturing, mechanical maintenance and station operation, among other sectors.

The overseas expansion of China's competitive industries requires not only core technologies, but also suitable platforms, experts say. To that end, they believe, cross-border M&A, and long-term operation and management, could be great steps.