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SPEM successfully developed the first indigenized boiler feed water pump for 600MW super-critical unit.
 In September, SPEM and Shanghai Nanhui District Damaiwan Industrial Park signed Land Development Agreement to launch new factory premises construction.
 In November, SPEM and Shanghai World Expo Land Reserve Center signed Protocol for Land Access Compensation for Purchase.
In June, Shanghai Municipal Electric Power Company (SMEPC) and Shanghai World Expo Land Reserve Center signed Framework Protocol for Land Access Compensation for Purchase, thus symbolizing formal starting of SPEM’s building demolition and movement project for Shanghai World Expo 2010.
 In December, SPEM successfully localized 600MW sub-critical boiler variable speed feed water pump set.
In December, SPEM was chosen through public appraisal as “Shanghai Municipal High & New Technology Enterprise” by Shanghai Municipal Science and Technology Committee.
SPEM gained NNSA’s “Permit for designing and manufacturing pressure-retaining equipment for 1000MWe PWR nuclear power station”, which was a symbol of entering into civil nuclear power market with its own brand.
The honorable title said was awarded to SPEM by SEPC again.
 In August, SPEM was admitted by Moody UK in ISO9001:2000 quality system certification.
SPEM won the order for 2 sets of 325MW boiler feed pump for Sahand Power Station Iran, which broke a record of making a duck in its pump products as exports.
 In the same year, the honorable title “Double Civilizations Model Unit” was awarded to SPEM by State Electric Power Corporation, and “Shanghai Municipal Model Unit in Supporting the Army and Favoring Family Members” by CPC Shanghai Municipal Committee, Shanghai Municipal Government and Garrison.
On Jan.21, Shanghai Power Equipment Manufacture Co., Ltd, namely SPEM was founded in state.
The Factory was admitted respectively by State Administration for Commodity Inspection and Moody UK in ISO9001:1994 quality system certification.
 Checked up and appraised by Power Machinery Bureau of State Power Corporation, YOT46-550 hydraulic coupling developed by Factory itself was awarded the 1st prize of Electric Power Production Enterprise Science and Technology Progress of 1998 year.
 In December, authorized by Shanghai Municipal Electric Power Company., Factory was renamed as Shanghai Power Equipment Manufacture Co., Ltd. And the first Board of Directors Meeting and Board of Supervisors Meeting were hold in the same time.
The Factory was titled by Ministry of Power Industry “National Excellent Power Equipment Enterprise for Facing Market and Serving Electric Power Industry during Eighth Five-year Plan”.
 In the same year, DG600-240 boiler feed pump and YOT51 hydraulic coupling were awarded “Certificate of State Science and Technology Achievement” respectively.
In December, No.2 Machine Shop’s fitter team for products assembling was titled “共青團號” (the Communist Young League) by CYL Shanghai Municipal Committee.
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