Electronics and electrical engineering company Siemens AG recently procured a plum turnkey power project worth $800 million in Argentina from local thermal energy major Fideicomiso Central Termoelectrica Guillermo Brown S.A. As part of the deal, Siemens will be responsible for power transmission, fuel supply solutions and full-service maintenance for the project over a 10-year period.
In addition, Siemens will also supply two F-Class gas turbines and two generators along with the requisite infrastructure facilities to offload fuel, high-voltage transmission lines, switchyard, and fuel pipelines for the power plant. Construction work for the power plant, with an electricity generating capacity of approximately 580 megawatts (MW), is scheduled to start in 2015.
Over the years, Siemens has played an active role in commissioning various power plants in Argentina, which have a combined capacity of about 3,000 MW of electricity. With massive industrialization, the 30,000-MW installed power plant capacity in Argentina is expected to increase significantly in future. Consequently, Siemens envisions a lucrative business opportunity in this Latin American country to fuel its growth engine.
Siemens’ Energy business segment comprises Power Generation (PG), Power Transmission & Distribution (PTD) divisions, Fossil Power Generation, Renewable Energy and Solutions for the Oil and Gas Industry. The PG division offers services and products such as the planning and construction of power plants, the manufacture and installation of components and systems, power plant upgrades, energy management systems, and fuel cells. It also supplies turbines, compressors, and complete solutions for industrial plants, particularly in the oil and gas industry. The PTD Division is a manufacturer, systems integrator and provider of solutions and services for the power utilities and industry customers, which enables utilities to transport and distribute electricity.
Siemens presently has a Zacks Rank #3 (Hold). Other players in the industry worth reckoning include Daktronics Inc. (DAKT - Snapshot Report), Jinpan International Limited and Kopin Corporation (KOPN - Snapshot Report), each carrying a Zacks Rank #2 (Buy).