The joint venture, which will be headquartered in St Petersburg, will engineer, manufacture and service large gas turbines in Russia and the other countries within the Commonwealth of Independent States (CIS).
It will bundle Siemens engineering and technology competencies with the production capacities of Power Machines, and in return, Siemens will hand over its stake of 25 per cent plus one share in Power Machines to the majority shareholder, Highstat Limited.
The new company is scheduled to begin 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 CIS,” 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 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.
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