Siemens posts record sales in fiscal `94
Siemens is pushing to increase its share of the world energy construction market through a new subsidiary, fresh partnerships and a new view on plant design.
The Power Generation Group of Siemens has established Siemens Power Ventures GmbH, with headquarters in Erlangen, Germany. The new company will identify promising power plant projects with an eye on financing them as a co-investor. Siemens estimates “Build-Oper-ate-Own” projects will account for one-third of the orders placed for fossil-fired plants worldwide. The new company will target markets in Europe and the Asian-Pacific region.
The Power Ventures group is already a co-investor in the combined-cycle plants Tapada do Outeiro in Portugal and Puertollano in Spain. In Asia, several projects are being developed, including the 605-MW Paguthan combined-cycle plant in India and the 1,200-MW Paiton II coal-fired plant in Indonesia.
Aggressive growth in 1994 brought in record orders, up 11 percent to (US)$6.61 billion. Adolf Huettl, Siemens Power Generation Group president, attributed the increase to the success of the company`s ongoing cost reduction programs with savings passed on to the market. He said productivity gains in the company`s manufacturing and engineering sectors, along with improved procurement management and the “design-to-cost” program, allowed the company to cut manufacturing costs for turbines and generators for combined-cycle plants as much as 30 percent while reducing construction time from 36 to 24 months.
Siemens is partnering with its gas turbine licensee, Ansaldo of Italy, for turnkey construction of two 430-MW combined-cycle power plants in Lebanon, one in Zahrani in southern Lebanon and the other in Beddawi, near Tripoli. The first gas turbine at each plant is scheduled to begin operation by mid-1996, with full combined-cycle service to commence by mid-1997.
The Power Generation Group has a new contract worth (US)$202.5 million to build the first thermal waste recycling plant in eastern Germany. Located in Neubranden-burg, the plant will have an annual capacity of 150,000 tons of residual waste, recovering 8,000 tons of iron and 550 tons of aluminum, while generating 63 million kWhr of electricity. Construction will begin in 1996, with commercial operation expected in mid-1999. The contract is from Ostmeck-lenburgisch-Vorpommersche Verwertungsund Deponiegesellschaft, a municipal waste disposal company.
Siemens is building a similar plant for Zweckverband Abfallentsorgung Donau-Wald in Deggendorf, Germany, to begin commercial operation in 1998.
Siemens is working to bring its thermal waste recycling process to southeast Asia through a demonstration plant in Yokohama, Japan, which began operation in September 1994.