Siemens can make turbines in Russia if sees orders for 10–15 yrs

MOSCOW, Mar 6 (PRIME) -- Germany’s Siemens is ready to localize turbine production in Russia fully, if there is a sufficient number of orders for the next 10–15 years, a spokesperson told PRIME on Wednesday.

“New orders will primarily affect the speed of localization. The more orders, the faster is the start of full local production and the faster the investment will be returned,” the official said.

“We have already reached a more than 60% localization for gas turbine SGT 5-2000 E, and by 2024–2025, we will be ready for 100% localization if a satisfactory number of orders on these turbines exists for the next 10–15 years.”

Russia buys high-capacity gas turbines from Siemens as local companies do not produce them. In 2017 Siemens said that all the four turbines meant to be used on a Russian power plant on the Taman Peninsula were illegally shipped to Crimea, forcing the company to cancel its licensing agreements to sell power equipment to Russian firms and suspend then-current agreements with state-run companies.

Siemens continues litigation with its Russian contractors, and the Russian Industry and Trade Ministry developed a three-year roadmap to produce gas turbines with 110–170 megawatt (MW) capacity.

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