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Siemens to add production in St. Petersburg to its gas turbine manufacturing network | Europe

Siemens to add production in St. Petersburg to its gas turbine manufacturing network

Siemens is to further expand its global gas turbine manufacturing network and launched a new joint venture in Russia named Siemens Gas Turbine Technologies. ?The joint venture intends to invest approximately 275 million euros in a new gas turbine site in St. Petersburg and consequently will create 500 jobs. Starting in 2014, advanced, high-efficiency gas turbines are to be produced there for the growth market in the Commonwealth of Independent States (CIS),? said Michael Suess, member of the Managing Board of Siemens AG and CEO of Siemens Energy. Siemens has a 65 percent stake in the joint venture and its Russian partner Power Machines holds the remaining shares. The site will also feature research and development activities in addition to production, service, and sales and marketing. This commitment is part of the plans announced by Siemens to invest one billion euros in Russia and thus create a total of 4000 jobs.

Besides the high availability of natural gas, modernization and expansion of the power plant fleet will be the drivers for the gas turbine market in the CIS region. Siemens expects total power generation in the member countries to increase by approximately 2 percent annually during this decade. Here, gas-turbine power plants will play a major role: In 2010, power plants operated with gas turbines in the CIS contributed 30 gigawatts (GW) to the combined installed capacity of 370 GW. By 2020, based on Siemens estimates this share will rise to 100 GW. ?As global market leader in advanced gas turbines Siemens will obviously benefit from that,? added Suess. Siemens only recently opened a new turbine production facility in the U.S. in Charlotte, North Carolina as a supplement to its established manufacturing plant in Berlin.

Above all high-efficiency combined cycle power plants will be of major importance for power generation in the future in the CIS. Siemens holds the world record with its H-Class turbine with an efficiency of 60.75 percent, testified at the installation site in Irsching. The average efficiency of thermal power plants operated in the CIS is less than 37 percent and half of them are more than 30 years old. Compared to the gas turbine power plants currently in operation, the latest-generation Siemens gas turbines operated in combined cycle duty with a steam turbine reduce both carbon dioxide (CO2) emissions and gas consumption on average by a third.

Siemens has been doing business in Russia for almost 160 years. Examples of recent activities include an assembly plant for medium-voltage switchgear in Dubna in the vicinity of Moscow and a joint venture for pipeline compressors headquartered in Perm. Operations were also recently started at a factory for high-voltage products in Voronezh, which is located 500 kilometers south of Moscow. Next year, a transformer factory is to be opened there and a production plant for gas-insulated switchgear is to follow.

High-efficiency gas turbines and combined cycle power plants are part of Siemens? Environmental Portfolio. In fiscal 2011, revenue from the Portfolio totaled about ?30 billion, making Siemens one of the world?s largest suppliers of ecofriendly technologies. In the same period, our products and solutions enabled customers to reduce their carbon dioxide (CO2) emissions by nearly 320 million tons, an amount equal to the total annual CO2 emissions of Berlin, Delhi, Hong Kong, Istanbul, London, New York, Singapore and Tokyo.
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Posted by Gloria Llopis | 2011-12-02