Siemens AG and Russia's leading power engineering firm Power Machines will set up a joint venture to produce and service large gas turbines, Power Machines said on Monday.
"The joint venture is to be launched within the next few months after the necessary approvals by all the related authorities have been received," Power Machines said in a statement.
The venture, based in St Petersburg, will include a gas turbine engineering center and industrial facilities. Siemens will own 65 percent in the venture, while Power Machines' stake will amount to 35 percent.
"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. We are investing in Russia in building up production capacity for leading-edge power plant technology," Michael Suss, CEO of Siemens Energy Sector, was quoted as saying.
Power Machines General Director Igor Kostin said that the company expected orders growth in mid-term to supply the venture as the company received more steam turbine and turbo-generator equipment.
Siemens AG has sold 25 percent plus one share of Power Machines, Russia's leading power engineering firm, to Highstat Limited company owned by billionaire Alexei Mordashov, Power Machines said on Monday.
"This deal will be finalized after approval by all related authorities," the company said in a statement.
Highstat Limited owned 70.06 percent in Power Machines before the deal with Siemens.
