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Siemens Buys Rolls-Royce Compressor Unit

US$1.32 billion sale includes gas turbine line


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Rolls-Royce is selling its energy gas turbine and compressor business to Siemens for US$1.32 billion. The deal is expected to close before the end of the year.

Rolls-Royce will receive a further US$340 million for a 25-year licensing agreement, granting Siemens access to relevant Rolls-Royce aero-derivative technology for use in the 5364 to 114,000 hp (4 to 85 MW) gas turbine range. Rolls-Royce’s energy gas turbine and compressor business has 2400 employees.

Rolls-Royce’s share of the Rolls Wood Group (RWG) joint venture, which provides maintenance, repair and overhaul services, will be transferred to Siemens.

John Rishton, Rolls-Royce CEO, said, “This agreement … allows Rolls-Royce to concentrate on the areas of business where we can add most value.”

More than 4800 Rolls-Royce aero-derivative gas turbines have been sold worldwide. More than 1700 compressors, rated up to 50,000 hp (37 MW), have been installed.

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