Siemens announced it was forming a joint venture with Russian heavy machine maker Uralmash for constructing plant for the Russian metals and mining industries. The German engineering concern announced at its Munich headquarters it was to take a majority stake through its subsidiary, VAI Metals Technologies, of 50 per cent plus one share in the new company.

Uralmash, based in Yekaterinburg, makes heavy machinery for the Russian mining, metallurgical and electricity production sectors.

Siemens has long held a blocking minority in the Russian company Power Machines, but has been prevented by the Russian authorities from taking a controlling stake.

Earlier this month, Siemens announced it had secured a contract from Power Machines for the supply of components for the Urengoiskaya and Kirishi projects in Russia.

The German company sees itself as “market leader in Russia in the field of gas turbine technology.”