It is reported that Siemens AG and OJSC Power Machines signed the final documents for the establishment of a Russian joint venture to produce and provide aftersales services on gas turbines.

The joint venture will absorb EUR 275 million as investments and employ 500 people.

Siemens share in the joint venture is 65%, the share of Power Machines is 35%. The project was already approved by the Federal Antimonopoly Service of Russia, the antimonopoly committee of Ukraine, anti-trust bodies of Germany and Austria, the actual implementation will start on December 1 2011.

The joint venture will be based on Interturbo LLC owned by the partners since 1991, which will be re-named to Siemens Gas Turbines Technology LLC. Its activity will expand considerably. The company will engage in the research and development of new gas turbines, the localization of production in Russia, as well as in the assembly, sales, project management and maintenance of gas turbines.

Initially, the joint venture will preserve Interturbo existing capacities to produce the E and F class 168- and 292-megawatt turbines. A new world-class manufacturing complex for the production and maintenance of high-efficiency gas turbines is scheduled for 2014.

This project contributes to the comprehensive modernization of the Russian power stations benefiting from the most advanced and innovative technologies. The prospective consumers of the goods produced by the joint venture are electric power manufacturers in Russia and the CIS countries.

Siemens recently launched a new gas turbine production plant in Charlotte in addition to the existing plant in Berlin. Establishing a production plant in Russia is part of Siemens's investment program providing for EUR 1 billion to be invested in the local projects and 4,000 working places to be created.

(Sourced from AK&M)