Siemens to Acquire Dresser-Rand

desserIt was announced this week that Siemens, a German electronics and engineering company, has made a deal to purchase Dresser-Rand, a US-based oilfield equipment manufacturer. This agreement concludes a bidding war between Siemens and Sulzer, a Swiss pump manufacturer.

siemensThe deal, worth $7.6 billion, will give Siemens direct access to US domestic oil production, a sector currently booming from new extraction techniques like hydraulic fracturing. Houston, Texas is a primary hub for the oil industry and this location is an ideal place for Siemens to enter the growing US market. Siemens has already played a role in the US power industry, mainly with its production of gas turbines. The company is also purchasing Rolls-Royce Holdings PLC’s energy gas turbine and compressor business, including its Houston operations. Continue reading “Siemens to Acquire Dresser-Rand”

What’s Going to Happen to the Service Market?

http://www.businessweek.com/news/2014-04-29/ge-said-to-covet-alstom-business-servicing-electric-power-plants
Source: Business Week, “GE Said to Covet Alstom Business Servicing Power Plants”

GE considers buying Alstom but so is Siemens. What’s going to happen to the service market?

Currently Alstom covers 25% of the world’s service market and is the world’s third largest provider of equipment and services for power generation. (Source: Alstom)

Power plants are aging as we speak, so the service market is attracting the attention from different service providers.
Continue reading “What’s Going to Happen to the Service Market?”