Weir and Siemens Launch Global Network

Industrial Applications Division of Siemens Power Generation, Germany, and the Services Division of the Scottish based Weir Group, have entered into a world-wide Co-operation Agreement. The scope of the Agreement covers joint marketing and sales activities for the maintenance of a wide range of rotating equipment, including industrial turbines, turbo compressors, pumps and technical accessories for industrial plants. In addition to this, both companies have agreed joint utilisation of their global service activities and intend to build a "Healthcare Network" for the Oil and Gas, Power, Water and Desalination industry.

Siemens and Weir are confident that the Co-operation Agreement will enable both companies to significantly increase their share of the major global rotating equipment market.

This network will initially serve customers in the United Kingdom, the Gulf region, Central Asia, Africa and South-East Asia. The areas are well covered by service locations from either party, which will operate as a joint network. The network is expected to be up and running by the middle of this year.

Dr. Frank Stieler, Head of the Industrial Applications Division of Siemens Power Generation commented: "Increasingly, industrial customers, especially those in the oil and gas industry, are demanding all-round maintenance solutions from a single provider. In co-operation with Weir, we are not only in a position to offer customers our own industrial turbines and turbo compressors, but also can now provide complete 'healthcare solutions' for the entire train. The new agreement gives us a decisive competitive advantage in the growing service market."

Peter Syme, Divisional Managing Director of Weir Services Division, added: "Weir Services and Seimens already have an impressive track record of adding substantial value to customers' operations. Through this co-operation, we can offer customers a one-stop shop service focused on providing engineering solutions to improve and enhance the performance and lifespan of their equipment. Furthermore, the agreement gives Weir Services access to new markets and customers."

Based in Scotland, Weir Services Division is part of The Weir Group PLC, with operations throughout Europe, the Middle East, Australasia and Canada. The division employs 1800 people worldwide, supported by the headquarters' team in Glasgow. Turnover in 2002 was £180 million and the business has doubled in size over the last five years. The division supports customers in the power, water, oil and gas and industrial sectors, providing expertise in the installation, repair and maintenance of rotating equipment. More information is available at www.weirservices.com.

Siemens Power Generation, a business unit of Siemens AG, is a leading player in the international power plant business. In the 2002 business year (as at September 30), Siemens PG generated a turnover of € 9.4 billion and received orders to the value of € 10.6 billion. The results prior to interest and tax on profits (EBIT) amounted to € 1,582 million. As at September 30, 2002, PG employed approx. 26,000 staff. Further information can be found at www.pg.siemens.com.