John Wood Group Plc, the energy service firm together with Siemens AG, the German industrial conglomerate, have announced the formation of a joint venture entity to create a globally integrated rotational equipment service unit. 

The joint venture would include the maintenance and power solutions units of the Wood Group GTS. For Siemens, the joint venture would include the TurboCare business unit, whose main business is in repair and manufacturing services.

Included in the joint venture provisions, Woods Group GTS Divisional CEO Mark Dobler would head the joint venture firm, leaving his previous position in the Wood Group board. The shareholding split for the joint venture would be 51% Wood Group GTS and 49% Siemens. The JV is projected to provide the delivery of annual net synergies to the Wood Group of about USD15 million on the third year of the venture. Also included in the JV provisions woild be the payment of up to USD70 million from the venture to the Wood Group.

The completion of the JV provisions would be subject to a number of standard regulatory approvals.