ScottishPower has awarded a 10 year business agreement to Siemens Energy which secures work at its Newcastle facility until 2019.
The contract is for parts, shop repairs and field service for three gas turbines, generators and a steam turbine for the ScottishPower owned Rye House power station in Hertfordshire, north of London.
The 10-year business agreement, split into two five-year terms, will be worth millions to Siemens’ Newcastle operation. The contract will be managed by the Siemens project and order management teams based in Newcastle with all required site works executed by the UK based field service team.
Carl Ennis, Managing Director of Siemens Energy Service Fossil, highlighted the importance of the agreement to the Newcastle facility. “The project not only secures the service business for the next ten years but also assists long term business planning and further enhances our existing relationship with one of the UK’s leading energy companies.”
The agreement follows on from the successful 2005 business agreement between Siemens and ScottishPower which covered parts, shop repair and field service for the gas turbines, generators and steam turbines. According to Siemens, the success of the previous contract contributed to Rye House reducing its emissions and improving efficiency, becoming one of the most reliable plants within the ScottishPower generating fleet.
“We’re delighted to build on the excellent relationship that we’ve developed with Siemens over the years,” said Hugh Finlay, Generation Director at ScottishPower. “The work Siemens undertakes at Rye House is critical to the long term maintenance of the station and ensures continued leading class plant performance.”
The latest Siemens contract win follows multi-million deals signed with Rio Tinto Alcan and RWE npower in recent months.