Comments
Siemens plans to acquire the Dutch sister companies NEM B.V. and Nem Energy Services B.V. (NES) which are specialists in heat recovery steam generators for combined-cycle (gas and steam) power plants for about €170 million.
The two companies together employ a workforce of around 1,000 and booked sales of €325 million in fiscal 2010 (ended September 30).
Regulatory nod needed
The companies are currently owned by HTP Capital B.V. The takeover is subject to regulatory approval by the European Commission. While Siemens expects the purchase price to be in about €170 million, the final price will depend on the business development at NEM and NES until financial closing.
“Heat recovery steam generators are key components for our business. They account for about 15 per cent of the value creation in the construction of a combined-cycle power plant. This purchase enables us to expand our capacities and enhance our expertise over the long term,” said Mr Roland Fischer, CEO, Fossil Power Generation Division in Siemens.
In a combined-cycle power plant, the hot exhaust gases from a gas turbine are passed through a heat recovery steam generator (HRSG) to raise steam that drives a steam turbine, considerably improving the efficiency of the power plant.
“Taking over this business from NEM and NES further strengthens our position in the gas and steam power plant sector. We already hold the world record for efficiency in these highly versatile power plants and are looking forward to a steady stream of incoming orders,” Mr Fischer said
In 2007, Siemens took over the HRSG business of Balcke Dürr Austria.
Versatile plants
Due to their versatile output control capability and short start-up time, combined-cycle power plants are ideal for compensating for the natural fluctuations inherently associated with wind and solar power.
NEM mainly designs, engineers and sells heat recovery steam generators, whereas NES is in the associated service business. NEM and NES operate worldwide and have branches or affiliates in the Netherlands, Germany, the US, the UAE, Egypt and Malaysia.
Siemens has been working with NEM and NES.
Combined-cycle power plants are part of Siemens' Environmental Portfolio, on which the company earned revenues of about €28 billion in fiscal 2010.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.