Siemens sets up JV to develop steam turbine industry in Bandung
Monday, November 8 2010 - 02:18 AM WIB
The agreement would establish PT Siemens Industrial Power Indonesia, of which Siemens AG has a 60 percent stake and PT NTP, a subsidiary of state aircraft maker PT Dirgantara Indonesia, will hold the remaining shares.
The total investment is expected to be 12 million euro (US$16.94 million) with projected manpower of 100 employees.
Siemens sees huge potential in the steam turbine market for domestic consumption to support Indonesia?s aggressive acceleration program for electricity generation, Siemens oil and gas division director Markus Tacke said.
?[The joint venture] also aims to develop various industries, such as sugar, fertilizer, crude palm oil, cement, oil refinery and chemical,? Tacke said, adding that both companies would build production facilities for industrial steam turbines.
PT NTP executive Supra Dekanto told reporters that the joint venture company would start operating early next year in Bandung, West Java, and would build Siemens SST-140 steam turbines with capacity between 3 and 15 megawatts (MW).
?Siemens is also willing to develop capacity up to 250 MW,? he said, adding that SST-140 turbines could be used at fertilizer and sugar factories.
?There will be two types of the SST-140 turbines: condensing and back pressure types. The turbines can turn garbage, sunlight and waste into steam and then electricity,? he said.
?There is also the possibility in the future to produce and deliver geothermal steam turbines up to 55 MW,? he added without elaboration.
The joint venture aimed to supply four units of turbines by the end of next year and 40 units per year by the end of 2012, with state-owned electricity and fertilizer companies being the primary customers.
?The turbine production will fulfill an Industry Ministry regulation requiring a minimum 40 percent local content,? Supra said. (*)