Power Machines and Siemens Continue Cooperation

OJSC “Power Machines” and Siemens AG have entered into a license agreement whereunder Siemens provides Power Machines with the technology and the right to manufacture, sale and perform the maintenance of the 165 MW turbogas units SGT5-2000E.

The agreement is executed for the term till 2027. During the term of the agreement OJSC “Power Machines” will also have access to the modifications of the turbine of that type.

Obtaining of the license is another step in the cooperation between OJSC “Power Machines” and Siemens in the sphere of manufacturing effective and innovative gas turbines.

The assembly of the SGT5-2000E turbogas units in Russia will be performed by the joint venture of OJSC “Power Machines” and Siemens – SP “Interturbo” which currently manufactures gas turbines ГТЭ-160 – the previous version of SGT5-2000E. As of today about thirty units of that category have been assembled. The units and parts manufactured in Russia will constitute about 60%. Most of the Russian components are manufactured by the branches of Power Machines: the Leningradsky Metallichesky Zavod and Turbine Blades Plant.

In contrast with its previous version the new turbogas unit SGT5-2000E is suitable for higher working temperatures and has higher power capacity.

The Power Machines’ strategy aimed at diversifying its gas turbine product range is aimed at meeting the future demands of the Russian power generating companies, in particular, the demand for steam-gas units with turbines having 65 – 278 MW capacity. The Russian market for the gas turbines of the specified capacity till 2011 is estimated in 15,000 MW.

“The license agreement with Siemens will allow Power Machines to supply more reliable and effective turbogas units to our customers. I believe that our mutually beneficial cooperation will continue to develop” - says Boris Vainzikher, General Director OJSC “Power Machines.”

“This agreement will contribute in our joint business and will help to facilitate the provision of other licenses to Power Machines by Siemens. This will form the basis for making more significant the role of Siemens as a reliable partner for Russia in the sphere of technology” – said Dr. Michael Zuss, member of the Board of “Power Generation” Department of Siemens AG.