Siemens Acquires Elektrozavod' Stake in Russian Joint Venture
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Press release date: March 2, 2010
Siemens Energy has fully acquired Siemens High Voltage Products OOO (LLC). Until now, Siemens had held a 51-percent stake in the joint venture headquartered in Ufa, the capital of the Russian Republic of Bashkortostan located near the foothills of the Ural Mountains. Elektrozavod, Russia's largest transformer manufacturer, held the remaining 49 percent in the joint venture, which was founded in November 2008. The Russian competition authority approved the transfer of title. Following completion of the acquisition Siemens wants to expand the production of circuit-breakers and disconnectors for high-voltage switchgear for the Russian market.
"We continue to regard Russia as an attractive market for high-voltage products and anticipate good future business opportunities for our innovative technology. We'll therefore be focusing our activities in the region and strengthening our position with local production capacities such as Siemens High Voltage Products," said Udo Niehage, CEO of the Power Transmission Division of Siemens Energy.
In addition to local production in Ufa, Siemens will continue to supply advanced high-voltage products for complex switchgear projects to Elektrozavod. Siemens High Voltage Products will produce and market not only high-voltage circuit-breakers and disconnectors but also DTC (Dead Tank Compact) compact switching modules for 110 and 220 kilovolts (kV). These modules, comprising circuit-breakers, disconnectors, grounding switches and current transformers, offer all the functions of an outdoor switchyard. They are assembled from components from the range of Siemens high-voltage products, which have a proven track record worldwide. Different switchgear designs can thus be realized with a minimum of engineering effort.
Last year, the Russian joint venture secured two major orders from the Federal Grid Company for the supply of DTC switching equipment for the 110-kV voltage level. Siemens High Voltage Products also posted two major orders with a combined value of EUR3.5 million for circuit-breakers and disconnectors for 220- and 110-kV substations.
The Siemens Energy Sector is the world's leading supplier of a complete spectrum of products, services and solutions for the generation, transmission and distribution of power and for the extraction, conversion and transport of oil and gas. In fiscal 2009 (ended September 30), the Energy Sector had revenues of approximately EUR25.8 billion and received new orders totaling approximately EUR30 billion and posted a profit of EUR3.3 billion. On September 30, 2009, the Energy Sector had a work force of more than 85,100. Further information is available at: www.siemens.com/energy.
OAO "Elektrozavod" (Moscow) is the biggest diversified company aimed at integrated approach when constructing, renovating and upgrading power engineering facilities. Company plants produce today more then 3,5 thousand items of power equipment: ranging from transformers and reactors to switchgears and converter equipment. The company owns four electrotechnical plants, research institutes, engineering and service centers. Elektrozavod Equipment is being sold in more then 60 countries and all over of Russia.
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