Major Joint Venture Formation
Wood Group forms US$1 billion Siemens tie up
Wood Group and Siemens AG have entered into an agreement to form a joint venture. This consists of the Maintenance and Power Solutions businesses of Wood Group GTS (excluding its Rolls Wood Group, TransCanada Turbines and Sulzer Wood joint ventures) and Siemens’ TurboCare business unit, which provides aftermarket gas turbine, steam turbine and generator design, repair and manufacturing services.
The Siemens and Wood Group units have combined assets of US$1.1 billion. The joint venture is expected to deliver annual cost savings to Wood Group of around US$15 million within three years, the company said. The shareholding of the JV will be split: 51% to Wood Group; and 49% to Siemens.