Comprising Wood Group GTS’s Maintenance and Power Solutions businesses excluding its Rolls Wood Group, TransCanada Turbines and Sulzer Wood joint ventures, and Siemens’ TurboCare business unit, the JV is expected to boost the future prospects of Wood Group’s gas turbine activities.
With shareholding split 51%:49% Wood Group:Siemens, the JV is also anticipated to deliver annual net synergies to Wood Group of around $15m within three years.
The JV will have an estimated annual revenue of about $1bn, and approximately 4,500 employees worldwide.
Wood Group CEO Bob Keiller said the JV will bring together two complementary businesses and create a differentiated service offering for a global customer base.
”Our joint ventures with OEM relationships typically deliver stronger performance, and, as we look ahead, we see good potential for the JV,” Keiller added.
Wood Group GTS CEO Mark Dobler said, ”The JV will be a significant integrated rotating equipment service provider to the global power generation, oil & gas and industrial sectors.”
Dobler will transfer to and lead the new JV, which will comprise all Wood Group’s predominantly opex related gas turbine activities, and be reported within the Wood Group PSN division.
Subject to regulatory approvals, the completion is expected in the first quarter of 2014.
