* Companies to form two joint ventures - Siemens
* Siemens to hold 49 percent in each JV
* Renewable Energy division accounted for 5 pct of Siemens
(Adds analyst quote, industry background)
By Christoph Steitz
FRANKFURT, Dec 9 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
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
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
(Editing by Hans-Juergen Peters and Jodie Ginsberg)