Siemens-Westinghouse sees major benefits
Siemens-Westinghouse, the group formed by Siemens` acquisition of the Westinghouse Power Generation, announced the benefits it sees from the deal. Although the integration of the Westinghouse business is likely to take two years and could cost $500m in restructuring, it will generate about $600m in synergies after about four years.
The new company is also planning to develop new unified products as Siemens will now have access to technology from Westinghouse`s involvement in the US Department of Energy`s Advanced Turbine Systems Programme.
The companies were described as a “perfect match” with few product overlaps. Westinghouse is strong in the 60 Hz market while Siemens specialises in 50 Hz equipment. Not everyone, however, is in complete agreement. Pierre Bilger, chairman and chief executive officer of Alstom, said: “Alstom welcomes any consolidation in principle; the market needed it and needs further consolidation in Europe. But the Siemens-Westinghouse `fit` is less obvious than an Alstom-Westinghouse fit would have been.” Alstom was in the running to purchase Westinghouse but thought that the price ultimately paid by Siemens was too high.
Siemens-Westinghouse has seen turbine orders soar with 41 contracts placed between June and September this year.