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BERLIN, August 2 (Itar-Tass) —— Germany’s Siemens and Russia’s Power Machines plan to set up a joint venture for the production of gas turbines. The would-be joint venture, headquartered in Russia’s second largest city of St. Petersburg, will be launched in the next few months, a spokesman for the German company said on Monday.
Siemens will hold 65 percent of shares in the would-be joint venture and will hand over its stake in Power Machine (25 percent plus one share) to the latter’s majority shareholder, Highstat Limited. The new joint venture will help to better serve the growing market for gas turbines, pump storage power plants, and combined power plants in the CIS, said Siemens Energy Sector CEO said Michael Suess.
“We are investing in building production facilities in Russia for the most state-of-the-art electric power plants,” he said. In his words, the German concern wants to make its contribution in the modernization of the energy sector in the region and concurrently to consolidate its positions.
The joint venture will develop, manufacture and service gas turbines In Russia and other CIS countries.
More than a half of power stations in the CIS are older than 30 and need modernization, Suess noted.
The joint venture is a “qualitatively new stage in strategic partnership” between the two companies, Power Machines said in a press release. “It will use Siemens’ latest designer developments and technologies and Power Machine’s extensive production facilities,” the document said.