Wood Group agrees gas turbine venture with Siemens

Oil services company Wood Group and German industrial giant Siemens have formed a gas turbine joint venture.Wood has agreed to merge its maintenance and power businesses with Siemens' TurboCare business division, which provides after-sales gas turbine, steam turbine and generator design, repair and manufacturing services.The joint venture, which will have about $1bn of revenue and around 4,500 staff worldwide, excludes Wood's Rolls Wood Group, TransCanada Turbines and Sulzer Wood joint ventures.Wood said it would improve the prospects of its gas turbine activities, which have typically done better in partnerships with original equipment manufacturers. It said the venture would help Wood to save $15m a year by the third year and it expects a further payment of about $70m. Wood will hold 51% of the venture with Siemens owning the rest.Completion is subject to approvals and is expected in the first quarter of 2014. Wood's Chief Executive Bob Keiller said: "The JV with Siemens will bring together two complementary businesses. As we look ahead, we see good potential for the JV."PW