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Siemens AG

Joe Kaeser
Joe Kaeser, President and Chief Executive Officer
of Siemens AG

"Our far-reaching investments underscore Russia's great importance as a strategic core market for Siemens. By entering into a technology partnership, we're supporting the country's ambitious modernization plans and placing our close cooperation with our Russian partners on a new, even broader basis."

Siemens in Russia

Siemens has been committed to Russia since the company established an office in St. Petersburg in 1853 to handle construction of the first state telegraph network.

Siemens currently has more than 3,120 employees in Russia.

In 2013, Siemens celebrated its 160th anniversary in Russia.

Siemens offers a wide range of solutions and services in Russia, where its Energy, Healthcare, Industry, and Infrastructure & Cities Sectors occupy leading positions.


 
   
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Siemens AG

Munich, Germany

Company's website: www.siemens.com

T: +49 8963600

Public company (FSE: SIE)

Contact: Mr Joe Kaeser, President & Chief Executive Officer

Siemens is a major electronics and industrial engineering company, with four main business units: Industry, Energy, Healthcare and City Infrastructure. Siemens' operations, which encompass 750 subsidiaries and associated companies, make everything from automation equipment and building technologies for manufacturers and construction companies to diagnostic and imaging systems for hospitals and clinics.

1
Energy Sector

The Energy Sector implemented a number of significant projects, including the supply of two SST-400 steam turbines for the Kurganskaya thermal power plant’s gas turbine unit and one SST-600 steam turbine for the Syzranskaya thermal power plant’s gas turbine unit. Both projects were successfully completed and put into commercial operation. A major forthcoming project comprising the supply of SGT-800 turbines, compressors and a 25-year long-term program service contract will be implemented for the Yamal liquefied natural gas plant. The Sector is also supplying 500-kW and 220-kW gas-insulated lines for the Novovoronezhskaya nuclear power plant, which is the largest power transmission project implemented in Russia in the last three years. The contract, which has a value of EUR 25 million, was signed in 2011. Both gasinsulated lines have now been installed. The installation and alignment of the gasinsulated transmission lines is in progress, with final project completion expected in March 2014. The Sector concluded an agreement to provide the Kirishskaya power plant with a 12-year service program for two SGT5-4000F gas turbines and two SGen5-1000A generators. The program includes turnkey services for scheduled outages of equipment, the refurbishment of parts, spare parts supply, an extended warranty package and an onsite plant engineer. This is the first service agreement of its kind between Siemens and Gazprom.


2
Healthcare Sector

The Diagnostics Division won its third order to supply products and solutions as part of Moscow’s healthcare modernization program. The contracts, which cover the delivery of laboratory diagnostics equipment to city hospitals, have made Siemens one of Russia’s leading suppliers of diagnostics equipment. The company also won a contract to provide 38 ultrasound systems in the Yaroslavl region. As part of the national modernization program, Siemens supplied advanced medical equipment units for eight cities in the Moscow region. Siemens provided a positron emission tomography center for Russian Railway’s Central Clinical Hospital in Moscow. The hospital is Russia’s first medical institution to have a molecular magnetic resonance imaging scanner. This is Siemens’ fourth large-scale project for Russian Railways.

3
Industry Sector

The Industry Sector signed a number of cooperation agreements with major Russian customers such as the Transneft Oil Company, the Ural Mining and Metallurgical Company and the United Aircraft Corporation. The Drive Technologies Division received new orders to produce gearboxes for Siemens Desiro RUS trains. The end customer is Russian Railways, one of the largest transportation companies in the world. The gearboxes will be produced in Russia in accordance with German quality standards. Siemens’ Metals Technologies Business Unit together with Midrex Technology Inc. received a major order with a value of EUR 270 million to set up a new hot briquetting iron (HBI) plant for the Lebedinsky mining company. The new plant will have a production capacity of 1.8 million tons of HBI per year, making it the world’s largest single-stand HBI module.


4
Infrastructure & Cities Sector

Siemens, the Sinara Group and Russian Railways signed a memorandum of understanding regarding the production and delivery of 675 freight locomotives for Russian Railways (RZD) by the end of 2020. The first aluminum car body for a Desiro RUS train (Lastochka) was produced by Ural Locomotives, a Russian railway engineering company. Ural Locomotives also presented a new AC cargo elocomotive that had been jointly developed with Siemens for the 1520 area. The Mobility and Logistics Division received an order to provide RZD with equipment for Luzshkaya, Russia’s largest marshalling yard. The Smart Grid Division signed an agreement with Bashkirenergo, a power and heat company operating in Bashkortostan, to collaborate in the modernization of the power grid in Ufa and the implementation of smart grid technologies. The Division was also awarded an order to provide Ural Locomotives with a traction substation in Verkhnyaya Pyshma. The Low and Medium Voltage Division won a contract to modernize low- and medium-voltage equipment for Lenenergo in St. Petersburg. This was the Division’s first contract in the Russian utility market. Lukoil elected Siemens to provide medium-voltage equipment for its Filanovskaya offshore platform in the Caspian Sea. The Building Technologies Division continued its successful work in the Sochi region, providing control products and systems (CPSs) for a media center in that area. Novo Nordisk, a pharmaceutical company, installed a Siemens’ building automation system in its new plant near Kaluga and in Uchta. The Division also won a contract to supply fire safety equipment for an oil pumping station.

Investment in Russia

In 2011, Siemens announced that it would invest about 1 billion euros ($1.35 billion) in Russia over 3 years, and the company is implementing this decision today. By mid-2013, 400 million euros ($540.3 million) had already been invested.

Siemens is running most of the projects with its partners: It has a joint venture to build gas turbines with Power Machines and is producing railroad technology with the Sinara Group.

Siemens plans to invest about 40 million euros ($54.3 million) in Skolkovo and by 2015 to open its own center for research and development for about 150 scientists and specialists.

The high-speed train Sapsan, built by Siemens in 2007, is already one of the symbols of the modernized Russian Railways.

Today, Siemens is using the company’s expertise to build high-speed electric trains, and not long ago the company signed a memorandum in Hannover with Russian Railways to develop locomotive building. In September 2013, Russian Railways began to put into service their partner’s new high-speed trains Lastochka on the Moscow-Nizhny Novgorod route.

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