Power Machines and Siemens develop cooperation

On June 21, 2008, in Saint Petersburg Peter Loescher, Head of Executive Board of Siemens AG, and Alexey Mordashev, Head of the Board of Directors of Power Machines, signed a license agreement. According to the terms of the agreement Siemens signed away the technology and the right to produce, sale and maintain gas turbine units SGT5-4000F of 285 MW to Power Machines.

The agreement stipulates that SGT5-4000F shall be supplied to power plants in Russia, Belarus, the CIS, the Baltics, India, Pakistan etc.

‘This license agreement is a new stage of strategic partnership of Siemens and Power Machines. It is the next step in the development of Russian power engineering. Production of this type of turbines in Russia will make Power Machines more competitive, taking into account home gas turbine power engineering prospective development’, said Igor Kostin, GEO of Power Machines.

License agreement for gas turbine of 165 MW signed by Siemens AG and Power Machines last year became the base of the present agreement.

Gas turbine unit SGT5-4000F is a new technology within the sphere of design of gas turbines of “the latest generation”.

Production of components for the first gas turbine SGT5-4000F will be started in 2009. In Russia this type of gas turbines will be assembled by Power Machines. For the present time Power Machines launched production of gas turbines GTU-165 and SGT5-2000E of 165 MW. Up to now more than 30 turbines have been assembled. About 60% of spare parts and components are produced in Russia. Most of Russian components are produced at Power Machines branches – Leningradsky Metallichesky Zavod and Turbine Blades Plant.

Strategy of Power Machines aimed at development of the production line of gas turbines has the goal to meet the prospective demands of Russian power generating companies and namely combined cycle power plants from 65MW to 278MW.

SGT5-4000F is a highly reliable, cost effective and salable gas turbine unit. Its capacity is 285MW and the efficiency is 39,8%. Siemens has so far produced 160 such turbines.