AlliedSignal, MTU form joint venture
AlliedSignal Inc. of the USA and Germany`s MTU München have announced an agreement to form a joint venture company to market and sell gas turbines. The joint venture, called Vericor Power Systems, is an extension of an existing working relationship between the two companies.
Vericor will market, sell and provide customer support for aeroderivative industrial and marine gas turbines in the range of 0.5 to 15 MW. According to Tom Bray, president and general manager of the new company, the deal will reduce risks for both MTU and AlliedSignal in the competitive industrial power and marine markets.
The joint venture will initially focus on AlliedSignal`s 3.3 MW ASE40, its 3.8 MW ASE50 and the 10 MW ASE120 gas turbines for industrial power applications. The products will be fabricated in both North America and Europe, with AlliedSignal initially providing parts and assembly/test services out of its Phoenix, Arizona manufacturing facility. Vericor will be fully operational by the end of 1999.
The deal is also expected to enhance an existing alliance between AlliedSignal and Coral Energy that recently an- nounced expansion into Mexico. This is a cogeneraion alliance to serve US industrial customers.