Germany’s Siemens has sold it’s stake in engine manufacturer Power Machines to another core shareholder Highstat owned by Alexi Mordashov.
Power Machines and Siemens will now create a new joint venture to produce gas turbines in St Petersburg. The German company will own two-thirds of the new venture, Power Machines the rest.
Investment from Siemens in the project is expected to be in the region of 275 million Euros.
The joint venture will be based at the Interturbo plant near Saint Petesburg and is expected to create 500 jobs. The plant has been owned since 1991 by Siemens and Power Machines. Interturbo will be re-named LLC Siemens Gas Turbines Technology and will have onsite research and development facilities.
“It is a classic JV, to which partners will invest in accordance to the amount of shares they hold”, said Mordashov.
According to Analyst at IC Region Valeriy Weissberg, the current value of Siemens stake in Power Machines will amount to about 300 million Eur, which roughly equals the future Siemens investment to the joint venture. “In fact the German corporation will invest in Siemens Gas Turbine Technologies all the money it gets from the Power Machines stock”, says the analyst.