Challenges the power plant industry faces in worldwide competition

The Power Generation Division (KWU) of Siemens AG is preparing for global competition by entering into joint ventures, making acquisitions, and establishing new key activities. Klaus Voges, Chairman of the Power Generation Division (KWU), outlines the objectives of his company at the Winter Meeting of the Deutsches Atomforum. Voges expects an upswing with new plants in the nuclear field for the next decade. This is the background against which the company's persistent adherence to nuclear power and the joint venture with Framatome must be seen. Voges also expects the global electricity generation market to grow in the next few years. Most of that growth will be in gas turbine and combined cycle plants, whose share in growth over the next few years will be around 50%. A leading position must be established in this field in order to succeed in global competition. For this reason, the acquisition of Westinghouse is an important strategic step to Siemens. An increasingly more important part of the company's business will be in the service sector, coupled with power maintenance and upgrading; it will rum customers and suppliers into long term partners. Achieving these long term partnership is one of Siemens' goals.