Siemens and Chromalloy Gas Turbine have joint forces and agreed to invest approximately $130 million to create a new joint venture called Advanced Airfoil Components. The JV will create up to 350 new jobs in the United States and will supply Siemens with turbine blade and vane cast components for power generation. Shipment of initial components is slated for 2018.
Ground-breaking of the new manufacturing facility is scheduled to take place later this year; however, the location is still being finalized and multiple Southern states are under evaluation. The facility is scheduled for completion in the autumn of 2018.
Once up and running, the stand-alone manufacturing plant will supply only to Siemens. Beforehand, start-up part qualifications and production shipments are in process at Chromalloy’s existing facility.
“The decision to form a joint venture and a new production facility continues our strong commitment to the US as a business location,” said Willi Meixner, CEO of the Siemens Power and Gas Division. The German engineering conglomerate has more than 60 manufacturing sites and approximately 50 000 employees in the U.S.; it invested $50 billion in the country over the past 15 years.
Based on a a long-lasting supplier relationship between the two firms, the new JV Advanced Airfoil Components will “exclusively supply Siemens with casting components for[its] gas turbines,” Meixner pointed out. “We will continue our established key casting supplier partnerships and all the existing long-term agreements will be executed.”
Carlo Luzzato, President of Chromalloy, commented that the continued expansion of the firms’ partnership “shows the value we place in each other’s capabilities and expertise.”
Chromalloy provides high-technology manufacturing capabilities for gas turbine engines. “And we are excited to bring those capabilities to help create and grow this new business with Siemens,”said Mr Luzzato.