German engineering major Siemens has increased its stake in the Russian company Power Machines, a leading manufacturer of power equipment in Russia.
Siemens has acquired a 20.62% holding in Power Machines from Interros, the majority shareholder to date, at a cost of $93 million. This new acquisition, together with an existing 4.38% stake, gives Siemens a total holding of 25 percent plus one share in Power Machines. The Russian anti-trust authorities granted approval for this step in December 2005.
“This increase in our stake in Power Machines will play an important part in consolidating our position on the Russian market, thereby enabling us to participate actively in the above-average growth there,” stated Dr. Klaus Kleinfeld, president and chief executive of Siemens.
Power Machines manufactures turbines, generators and other components for power plants and includes units such as Leningradskij Metallitscheskij Zavod (LMZ), Elektrosila and Zawod Turbinnych Lopatok (ZTL).
Following the transaction Interros now holds 30.4%, UES and Siemens each hold 25% plus one share and the remaining 19.5$ is in the hands of minority shareholders.
In a related story, Siemens Wind Power is expanding its production capacity with the acquisition of a former LM Glasfiber factory at Engesvang in Denmark for manufacturing rotor blades. Siemens is investing heavily in the assembly plant at its headquarters in Brande and in the rotor blade manufacturing facility in Aalborg to obtain a further increase in capacity. The total investment volume amounts to more than €50 million.
Series production of rotor blades in Engesvang, located half-way between the assembly plant at division headquarters in Brande and the rotor blade manufacturing facility in Aalborg, is scheduled to begin in early 2006.
The company is experiencing sharp growth in the wind energy sector, nearly doubling its wind turbine sales in 2005 over 2004 levels.
“Expansion of our capacities in Denmark is the first step in building up a worldwide manufacturing network,” said Andreas Nauen, head of the Wind Power division at Siemens.