UPDATE 2-Siemens, Shanghai Electric form wind power ventures
* Companies to form two joint ventures - Siemens
* Siemens to hold 49 percent in each JV
* Renewable Energy division accounted for 5 pct of Siemens sales (Adds analyst quote, industry background)
By Christoph Steitz
FRANKFURT, Dec 9 (Reuters) - German industrial conglomerate Siemens said it would form two joint ventures with China's Shanghai Electric to expand its foothold in the country's wind turbine market, the world's largest.
Siemens, which is the world's No.9 maker of wind turbines, said it would provide wind turbine technology and know-how in the offshore sector, as well as experience in project management.
Siemens will own 49 percent in each joint venture, while Shanghai Electric will own the remaining stakes.
"We see the agreements with our long-term partner Shanghai Electric as the breakthrough for Siemens in the world's most important wind power market. With the two joint ventures we're now optimally positioned to participate in this strong market," said Michael Suess, chief executive of Siemens' Energy Sector.
With revenues of 3.9 billion euros ($5.2 billion) in the fiscal year 2011, up a fifth from 2010, Siemens' Renewable Energy division -- which focuses on wind, solar and hydro power -- accounted for 5.3 percent of the company's total sales.
"The announcement of the joint ventures is good news in our view as we see a very strong player arising," DZ Bank analyst Karsten Oblinger said, keeping a "buy" rating on Siemens.
"Siemens is bringing in technological and project know-how and Shanghai Electric is bringing in very strong distribution power in the Chinese market".
Siemens is among a large number of bigger conglomerates and utilities trying to benefit from China's thriving wind market as a means to expand their renewable portfolios in light of Germany's decision to pull out of nuclear power altogether.
Germany's E.ON, the world's largest utility by sales, told Reuters in September it was in talks with China's wind turbine makers, adding it may in future source turbines produced there. (Editing by Hans-Juergen Peters and Jodie Ginsberg)