(Yicai Global) July 19 -- State-backed Shenergy Group, a major supplier of energy to Shanghai, has been merged with Shanghai Electric Cable Research Institute as part of a strategy to combine state-owned assets into high-quality enterprises, city authorities said at a meeting today.

The institute will tap Shenergy Group's capital and business resources to boost investment in cable technology research and development and push the development of high-temperature superconducting. The two sides will work together to promote the application of scientific and technological successes into real productivity.

Their union is the latest in a series. Since 2013, Shanghai has completed 17 mergers of 28 companies, involving CNY100 billion (USD14.5 billion) of assets and more than 10,000 personnel, according to the local state assets manager, which now directly oversees 44 firms and will continue to focus on high-quality development, promote joint restructuring of enterprises, and improve the concentration of resources.

Shenergy Group is also the main energy infrastructure investment and construction company for Shanghai. At the end of last year, its total assets exceeded CNY156.6 billion (USD22.8 billion) and annual operating income was CNY42.2 billion.

Shanghai Electric Cable was originally under the direct control of the National Industrial Sector Research Institute, and then converted into a state-owned holding in Shanghai, mainly working in cable-related scientific research, development, design, testing and information technology services.

Editor: Dou Shicong