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The Power Generation Group (PG) of Siemens AG is one of the premier companies in the international power generation sector.

In fiscal 2005, which ended September 30, Siemens PG posted sales amounting to approximately 8.1 billion euros (US$10.3 billion) and received new orders totalling 10.9 billion euros (US$14 billion). Group profit amounted to 951 million euros (US$1.2 billion). On September 30, 2005, Siemens PG had a workforce of approximately 33,500 worldwide.

Siemens PG on its own or in partnership with other companies can offer a complete range of forward-looking technology for the economical and resource-saving production of electricity and heat.

With the experience gained by a total installed plant capacity of more than 770 gigawatts (GW), it serves customers as a true partner throughout the entire power plant life-cycle: beginning with planning, project administration and project financing, supply of products and systems, continuing through turnkey construction and on to comprehensive service including plant operation and maintenance.

Its lignite- and coal-fired power plants attain very high efficiencies, resulting in a considerable reduction in emissions and the dissipation of far less waste heat.

The combined cycle power plants attain even higher efficiencies and hence maximum cost-effectiveness and environmental compatibility.

Siemens PG is a committed partner to China's power industry for highly efficient and environmentally compatible power plants and related services. Together with its Chinese joint venture partners Siemens PG is in the number one position for large-capacity, advanced steam power plants.

In October 2004, Siemens PG made a breakthrough in the Chinese gas turbine market, when the group in a consortium with Chinese partner Shanghai SEG secured orders to supply nine gas turbines for four combined-cycle power plants in China. The volume of the orders for Siemens was approximately 2.2 billion yuan (US$275 million).

All the three units installed at Huaneng Shanghai Combined Cycle Power Plant started operation successfully in July 2006. Located in Shanghai, it is the biggest of its kind in the area. With a total output of 3X400MW, its net efficiency reaches around 58 per cent.

In co-operation with SEG, Siemens PG established Siemens Gas Turbine Parts Ltd Shanghai with total investment of 580 million yuan (US$72.5 million) to provide the manufacturing of key components for Siemens' most advanced gas turbines.

Overall, Siemens PG is well positioned to benefit from future opportunities in this area.

In the industrial application area, a new joint venture Siemens Industrial Turbomachinery (Huludao) Co Ltd (SITHCO) was established in Liaoning Province in April 2005. In December 2005, Siemens won a contract to supply a total of six compressors and three steam turbines to China's largest olefin plant in Xinjiang.

With the global acquisition of Bonus Energy A/S in late 2004, Siemens entered the rapidly growing wind energy business. In China, a total number of 88 units of Siemens (Bonus) wind turbines were installed in eight wind farms in Xinjiang, Inner Mongolia, Hainan and Fujian.

In the service business, PG reached another Operating Plant Service Agreement for Gas Turbines of CNOOC Hainan Power Generation Co Ltd in Yangpu, Hainan Province.

Siemens Ltd China provides the story

(China Daily 09/13/2006 page23)