Siemens will be teaming up with the Russian company Power Machines OJSC within the next few months to set up a gas turbine joint venture, in which Siemens will hold a 65-percent stake and Power Machines the remaining shares. The joint venture headquartered in St. Petersburg is intended to perform engineering, manufacturing and servicing of gas turbines in Russia and the other countries within the Commonwealth of Independent States (CIS). The new company is scheduled to start operations as soon as the official permits have been issued.
"The new joint venture will enable us to better serve the growing market for gas turbines, and gas power plants and combined cycle power plants in the Commonwealth of Independent States," said Michael Suess, CEO of the Siemens Energy Sector. "We’re investing in Russia to build up production capacity for leading-edge power plant technology. We want to make our contribution toward modernizing the power industry in the region, and our target is to strengthen our position as market leader. For us it is extremely important to be active in Russia as a local player," Suess added.
The joint venture will bundle Siemens engineering and technology competencies with the production capacities of Power Machines. In return, Siemens will give up its stake of 25 percent plus one share in Power Machines and hand it over to the majority shareholder, Highstat Ltd. “The signed agreement stands for a new phase in the strategic partnership between Siemens and Power Machines and marks the next step in developing the Russian power plant industry. Power Machines will continue to deliver components to the new joint venture, in particular, steam turbines and turbo-generators", said Igor Kostin, General Director of Power Machines OJSC.