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. Last Updated: 07/27/2016

Siemens Considers New Plant

SOCHI -- Germany's engineering group Siemens may sell its minority stake in Power Machines and build a new turbines plant in Russia or India, an executive said Thursday.

Siemens has been looking to buy control in turbine maker Power Machines, but Russian authorities have blocked the deal on grounds of strategic importance and allowed the German firm to buy only a blocking stake of 25 percent.

"If this tragedy with Power Machines continues and the value of our stake keeps falling, then we could sell our share in Power Machines and build a new great plant," said Siemens' Russian head, Dietrich Mueller.

"We are now discussing a question whether to build a big turbines plant in India or in Russia," he told a railway industry conference in Sochi.

Russia has sweetened the pill for Siemens since blocking its goal with Power Machines by clearing a 600 million euro ($806.8 million) deal between the German firm and Russian Railways to deliver and service trains.

Former power monopoly Unified Energy Systems also has a blocking stake in Power Machines and has said it will sell it only to a Russian investor. The sale is expected in the first half of 2008.