Siemens Energy Secures Major Order in Gas Turbine Power Plant Market in China


Erlangen (Germany) - Siemens Energy secures major order in gas turbine power plant market in China Siemens Energy has received an order to supply key components for four 250-MW combined cycle units at the Ningxia East thermal power plant. The company also signed a major service agreement, under the terms of which it will provide long-term maintenance to Ningxia East Thermal Power Co., Ltd. This is the largest local service order secured by Siemens Energy in China to date. Plant construction is scheduled to commence in August 2010 and be completed by 2012.

"With this order we are further expanding our position in this attractive power plant market while making an important contribution toward ecofriendly power supply in the region," said Yao Zhenguo, General Manager of the Energy Fossil Division and Senior Vice President of Siemens Limited China, at the signing ceremony held in Yinchuan today. Under the terms of the contract Shanghai Electric Power Generation Co., Ltd. (SEPG) and Siemens will cooperate to supply the gas turbines for the four 250-MW combined cycle units operated by Ningxia East Thermal Power Co., Ltd. In this project Siemens Energy will act as SEPG's subcontractor and supply key components for the four SGT5-2000E gas turbines.

The maintenance agreement signed by Siemens and Ningxia East Thermal Power Co., Ltd. aims to ensure long-term operational reliability and provide additional technical and financial benefits to the plant owner, including predictable maintenance costs and extended warranties. Under the terms of this long-term agreement Siemens will provide spare parts and maintenance services for four Siemens SGT5-2000E gas turbines to be installed in the Ningxia East thermal power plant.

The term of the agreement is approximately ten years. Ningxia East thermal power plant, which is located in the city of Yinchuan, the capital of the Ningxia autonomous region, is jointly owned by Ningxia Hanas Natural Gas Thermal Power Co., Ltd and Ningxia Master (Group) Investment Co., Ltd.. The total investment is approximately RMB
3.8 billion. After the start of commercial operation the power plant will supply electric power to Yinchuan city and also provide district heat in the winter months to residents of the city's Xingqing district. "This order gives Siemens an opportunity to meet customer needs both by providing new equipment and maintenance services, which is a breakthrough in the Chinese gas turbine market," said Kay Weber, General Manager of the Energy Service Division and Senior Vice President of Siemens Ltd. China.

Through its cooperation with Shanghai Electric Power Generation Co., Ltd. (SEPG) since 2004, Siemens Energy has secured orders for fifteen F-class and six E-class gas turbines. 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: http://www.siemens.com/energy.

Siemens AG

Corporate Communications and Government Affairs

Wittelsbacherplatz 2, 80333 Munich

Germany

Media Relations: Gerda Gottschick

Telephone: +49 9131 18-85753

E-mail: gerda.gottschick@siemens.com

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