Siemens to buy NEM and NES design and service key components for power plants
August 4, 2011 – Siemens plans to acquire the Dutch sister companies NEM B.V. and Nem Energy Services B.V. (NES), it said. The companies are currently owned by HTP Capital B.V., and the take-over is subject to regulatory approval by the European Commission.
According to Siemens, 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).
“Heat recovery steam generators are key components for our business and account for about 15% 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,” said 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, continued Siemens.
“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,” said Fischer.
In 2007, Siemens took over the HRSG business of Balcke Dürr Austria GmbH and went on to engineer and build heat recovery steam generators for projects such as the world-record-holding plant Irsching 4, it said. “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%,” explained Siemens.
“The strategies of Siemens and NEM, providing superior technological added value, are very much in line,” said 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 most recently worked with NEM and NES 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 where it expects the purchase price to be in the region of EUR170 million.