Siemens Russia and the regional government of Voronezh have signed an agreement enhancing the existing cooperation on the construction of a power transformer production plant in the territory of the Voronezh region, Russia.

The new Siemens plant will be located within the Maslovsky industrial park. Construction is scheduled to commence in August 2010, with production to start by late 2011.

The plant’s annual production capacity will be as much as 100 transformers. With total investment in the project of more than EUR40m, over 300 new jobs will be created, Siemens said.

The main activities will be production, distribution and maintenance of power transformers to meet the needs of the integrated national power grid and the provision of power supply to production facilities. It is also intended to export products from Russia.

The production plant will be fully integrated into the Siemens global technological and production network. During the first stage, the plant will focus on the production of transformers with a maximum rating of 220kV. Siemens is investigating the possibility of expanding the product range up to 500kV transformers.

Dietrich Moeller, president of Siemens Russia/Central Asia, said: “Construction of the transformer production plant is in line with Siemens business strategy of expanding its presence in the Russian market and establishing local production facilities. We’re convinced of the enormous potential offered by the Russian market, which is of strategic importance for us.”