Siemens AG and Power Machines OJSC have entered into an agreement on establishment of a joint venture to develop, manufacture and service large gas turbines. The relevant document has been signed on 28 July 2011 by Michael Suess, CEO of Siemens Energy Sector and Igor Kostin, General Director of Power Machines OJSC. The joint venture is planned to be launched within the next months after the necessary approvals by all related authorities have been received.
It is planned to establish a joint venture in Saint-Petersburg consisting of a gas turbine R&D engineering center and world-class industrial facilities to manufacture and service gas turbines with the following structure of shares: 65% – Siemens AG, 35% – Power Machines. Also the Agreement on the Sale and Purchase of Shares in OJSC Power Machines has been signed. The terms of the agreement involve selling of Power Machines share holding (25% + 1) by Siemens AG to Highstat Ltd whose ultimate beneficiary is Aleksey Mordashov. This deal will be finalized after approval by all related authorities.
The establishment of the joint venture is a new level of strategic partnership between Power Machines and Siemens It will combine latest Siemens engineering developments and technologies and considerable manufacturing capacities of Power Machines.
"With the new joint venture we will be serving the growing market for gas turbines, gas power plants and combined cycle power plants in the Commonwealth of Independent States," said Michael Süss, CEO of Siemens Energy Sector, on the occasion of the signing of the contract. "We are investing in Russia in building up production capacity for leading-edge power plant technology. We want to help modernize the power industry in that region and at the same time strengthen our position as market leader. For us it is extremely important to be active in Russia as a "local player".
"The signed agreement is the new stage of the strategic partnership between Siemens and Power Machines and the next step in developing the Russian power plant industry. Power Machines will continue to deliver components to the new JV, in particular, steam turbines and turbo-generators", - said Igor Kostin, General Director of Power Machines OJSC.
Siemens AG (Berlin and Munich) is a global powerhouse in electronics and electrical engineering, operating in the industry, energy and healthcare sectors. For over 160 years, Siemens has stood for technological excellence, innovation, quality, reliability and internationality. The company is one of the world’s largest providers of environmental technologies. More than one-third of its total revenue stems from green products and solutions. In fiscal 2010, which ended on September 30, 2010, revenue from continuing operations (excluding Osram and Siemens IT Solutions and Services) totaled €69 billion and net income from continuing operations €4.3 billion. At the end of September 2010, Siemens had around 336,000 employees worldwide on the basis of continuing operations.
Siemens LLC is the holding company of Siemens in the regional cluster of Russia and Central Asia, which includes several other countries besides Russia, in particular Belarus, Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan and Uzbekistan. In these countries, the corporate group engages in all its traditional activities, it is present in over 40 cities and is one of the leading suppliers of products, services and complex solutions for modernization of key branches of the economy and infrastructure. Siemens in Russia and Central Asia provides workplaces for over 3,500 employees. The number of orders placed with Siemens in Russia, Belarus and Central Asia in financial year 2010 (as of September, 30) exceeded 2.7 bln euros, and the turnover amounted to over 1.3 bln euros. Further information is available on the Internet at: www.siemens.com