Siemens (SI) Plans Billion Dollar Energy Expansion in Russia
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Siemens (NYSE: SI) shares are lacking exactly what it plans on investing in: energy.
According to reports Monday, the Munich, Germany-based tech giant is planning to spend $1 billion or so (€700 million) to expand operations in Russia.
Expansion will be focused mainly on expanding plants for the construction of efficient gas turbines and in the service business. About €400 million will be dedicated to this initiative.
Funds will be spent in Russia over a three-year time frame.
In August, Siemens announced a joint venture with the Russian company Power Machines to manufacture, market and service gas turbines. CEO Peter Löscher commented, "By entering into a technology partnership, we're supporting the country's ambitious modernization plans."
In the area of renewable energies, plans call for the construction of a new production plant for wind turbines and a rotor blade manufacturing facility, for which investments totaling roughly €120 million have been earmarked. An additional investment of some €115 million is slated for a local manufacturing plant for transformers and production facilities for high-voltage products and gas-insolated switchgear in Voronezh. Together with its Russian partners, Siemens also intends to spend a further €60 million to build a production plant in Perm to manufacture pipeline compressors for Russia's oil and gas industry.
Siemens said about 4,000 specialist jobs will be created overall.
The announcement was made at the Foreign Investment Advisory Council annual meeting in Moscow.
Shares are 2.3 percent lower Monday.
According to reports Monday, the Munich, Germany-based tech giant is planning to spend $1 billion or so (€700 million) to expand operations in Russia.
Expansion will be focused mainly on expanding plants for the construction of efficient gas turbines and in the service business. About €400 million will be dedicated to this initiative.
Funds will be spent in Russia over a three-year time frame.
In August, Siemens announced a joint venture with the Russian company Power Machines to manufacture, market and service gas turbines. CEO Peter Löscher commented, "By entering into a technology partnership, we're supporting the country's ambitious modernization plans."
In the area of renewable energies, plans call for the construction of a new production plant for wind turbines and a rotor blade manufacturing facility, for which investments totaling roughly €120 million have been earmarked. An additional investment of some €115 million is slated for a local manufacturing plant for transformers and production facilities for high-voltage products and gas-insolated switchgear in Voronezh. Together with its Russian partners, Siemens also intends to spend a further €60 million to build a production plant in Perm to manufacture pipeline compressors for Russia's oil and gas industry.
Siemens said about 4,000 specialist jobs will be created overall.
The announcement was made at the Foreign Investment Advisory Council annual meeting in Moscow.
Shares are 2.3 percent lower Monday.
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