Siemens to buy gas and steam power plant component supplier

Dutch specialists NEM and NES design and service key components for power plants

Erlangen, Germany - Siemens plans to acquire the Dutch sister companies NEM B.V. and Nem Energy Services B.V. (NES). The two specialists in heat recovery steam generators for combined-cycle (gas and steam) power plants (CCPP) together employ a workforce of around 1,000 and booked sales of EUR325 million in fiscal 2010 (ended September 30). The companies are currently owned by HTP Capital B.V. The take-over is subject to regulatory approval by the European Commission. “Heat recovery steam generators are key components for our business and account for about 15 percent of the value creation in the construction of a combined-cycle power plant. This purchase enables us to expand our capacities and enhance our expertise over the long term,” says Roland Fischer, CEO of the Fossil Power Generation Division within Siemens’ Energy Sector.

In a combined-cycle power plant, the hot exhaust gases from a gas turbine are passed through a heat recovery steam generator (HRSG) to raise steam that drives a steam turbine, considerably improving the efficiency of the power plant as a whole. “Taking this business over from NEM and NES further strengthens our position in the gas and steam power plant sector. We already hold the world record for efficiency in these highly versatile power plants and are looking forward to a steady stream of incoming orders,” adds Fischer. In 2007, Siemens had already taken over the HRSG business of Balcke Dürr Austria GmbH and went on from there to engineer and build innovative heat recovery steam generators for projects such as the world-record-holding plant Irsching 4. Thanks to the perfectly harmonized interplay between all components – including the gas turbine and heat recovery steam generator – Unit 4 of Irsching Power Station holds the world record with a certified CCPP net efficiency of 60.75 percent. Owing to their extremely versatile output control capability and short startup times, combined-cycle power plants are ideal for compensating for the natural fluctuations inherently associated with wind and solar power.

“The strategies of Siemens and NEM, providing superior technological added value, are very much in line”, says Gerard Van Dijk, CEO of NEM Holding. “The addition to the Siemens Group provides NEM with access to the international network of Siemens. Moreover, Siemens, being a supplier of gas turbines, and NEM, supplier of HRSG’s are strongly complementary organizations. Altogether, this makes Siemens a very strategic partner to us.”

NEM mainly designs, engineers and sells heat recovery steam generators, whereas NES is in the associated service business. NEM and NES with headquarters in Leiden and Utrecht operate worldwide and have branches or affiliates in Egypt, Germany, Malaysia, the United Arab Emirates and the USA. Siemens has already been working together with NEM and NES for years, most recently on the Dutch Enecogen, Diemen and Hemweg projects and on the T- Power project in Belgium. Subject to approval by the anti-trust authorities, Siemens will purchase the company NES and will take over the major part of NEM’s business. Siemens expects the purchase price to be in the region of EUR170 million, but the final price will depend on the business development at NEM and NES until financial closing.

Combined-cycle power plants are part of Siemens’ Environmental Portfolio, with which the company earned revenues of around EUR28 billion in fiscal 2010, making Siemens the world’s largest supplier of ecofriendly technologies. In the same period, our products and solutions enabled customers to reduce their carbon dioxide (CO2) emissions by 270 million tons, an amount equal to the total annual CO2 emissions of the megacities Hong Kong, London, New York, Tokyo, Delhi and Singapore.

The Siemens Energy Sector is the world’s leading supplier of a complete spectrum of products, services and solutions for the generation, transmission and distribution of power and for the extraction, conversion and transport of oil and gas. In fiscal 2010 (ended September 30), the Energy Sector had revenues of approximately EUR25.5 billion and received new orders totaling more than EUR30.1 billion and posted a profit of more than EUR3.3 billion. On September 30, 2010, the Energy Sector had a work force of more than 88,000. Further information is available at: http://www.siemens.com/energy

Reference Number: EFP201107089e