OREANDA-NEWS. December 25, 2007. Siemens and the Russian Uralmash Machine Building Corporation ("Uralmash") intend to establish the leading engineering and supply company for plant building in the metals & mining industry for the Russian market. Both companies have signed a Memorandum of Understanding (MoU). "Siemens intends to increase its business in Russia and to use the JV as engineering resource for its global engineering network in global markets", said Dr. Richard Pfeiffer, CEO of Siemens VAI Metals Technlogies, Linz/Austra. "With the JV we support Russian national strategy to develop heavy machine and plant building industry", said Nazim Efendiev, Director General of Uralmashzavod.

According the MoU 50% plus one share of the Joint Venture will be owned by Siemens. The JV will be jointly managed by Siemens and Uralmash. Uralmash will contribute to the JV the business, personnel and all assets of Uralmash Engineering ("UME"), sales, engineering and project management departments of other subsidiaries of Uralmash active in plant building for metals and mining customers. Siemens will contribute to the JV business potential for sub supplies to projects of Siemens VAI Metals Technologies in Russia and abroad, the license to use certain technology and process solutions like pelletising, sintering, blast furnace technology and cold rolling. Contributions of both Parties to the JV will be defined in detail after due diligence.