OREANDA-NEWS. August 08, 2011. Siemens AG and Power Machines OJSC have entered into an agreement on establishment of a joint venture to develop, manufacture and service large gas turbines. The relevant document has been signed on 28 July 2011 by Michael Suess, CEO of Siemens Energy Sector and Igor Kostin, General Director of Power Machines OJSC. The joint venture is planned to be launched within the next months after the necessary approvals by all related authorities have been received, reported the press-centre of Power Machines.

It is planned to establish a joint venture in Saint-Petersburg consisting of a gas turbine R&D engineering center and world-class industrial facilities to manufacture and service gas turbines with the following structure of shares: 65% – Siemens AG, 35% – Power Machines. Also the Agreement on the Sale and Purchase of Shares in OJSC Power Machines has been signed. The terms of the agreement involve selling of Power Machines share holding (25% + 1) by Siemens AG to Highstat Ltd whose ultimate beneficiary is Aleksey Mordashov. This deal will be finalized after approval by all related authorities.

The establishment of the joint venture is a new level of strategic partnership between Power Machines and Siemens It will combine latest Siemens engineering developments and technologies and considerable manufacturing capacities of Power Machines.

"With the new joint venture we will be serving the growing market for gas turbines, gas power plants and combined cycle power plants in the Commonwealth of Independent States," said Michael Suss, CEO of Siemens Energy Sector, on the occasion of the signing of the contract. "We are investing in Russia in building up production capacity for leading-edge power plant technology. We want to help modernize the power industry in that region and at the same time strengthen our position as market leader. For us it is extremely important to be active in Russia as a "local player".

"The signed agreement is the new stage of the strategic partnership between Siemens and Power Machines and the next step in developing the Russian power plant industry. Power Machines will continue to deliver components to the new JV, in particular, steam turbines and turbo-generators", - said Igor Kostin, General Director of Power Machines OJSC.