Siemens, China's SPIC eye link-up in gas turbines

ZURICH, (Reuters) - Siemens and China’s State Power Investment Corporation (SPIC) have entered into a memorandum of understanding confirming their intention to collaborate on heavy-duty gas turbines, the German group said.

“The signing today will expedite finalisation of a technology cooperation agreement in the near future,” Siemens said in a statement.

Under the agreement, Siemens will support SPIC’s research and development of heavy gas turbines as well as provide training and technical consultation.

Heavy gas turbines have been a trouble spot for Siemens, which has been confronted with collapsing demand from power companies which are switching from fossil fuels to renewable energy sources.

The large turbines business is part of Siemens’ Power & Gas division, where profit plunged by 74 percent during the second quarter.

Siemens Chief Executive Joe Kaeser last month dismissed a report the German engineering company was considering selling off its struggling large turbines business as “media speculation.” (Reporting by Michael Shields; editing by John Revill)

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