Siemens wants to extend gas turbine tie-up with China's SPIC

MUNICH (Reuters) - Siemens wants to turn a gas turbines partnership with China's State Power Investment Corporation (SPIC) into a formal contract, the German company's Chief Executive Joe Kaeser said on Wednesday.

Siemens and SPIC last year agreed a memorandum of understanding to cooperate on developing technology for heavy-duty gas turbines and provide training and technical consultation for SPIC.

Work is now underway to convert this MoU into a binding contract, Kaeser said, which could be completed in the next few months.

China is becoming one of the few markets with demand for new gas turbines, in contrast to the rest of the world where demand has collapsed due to the rising popularity of renewable energy sources.

"We would do well to participate in the potential of the Chinese market," Kaeser told shareholders at the company's annual general meeting in Munich.

Kaeser also left open the possibility of a sale of further shares in the medical technology division Healthineers, in which Siemens holds 85 percent after floating the business last year.

He said he was looking forward to an increase in Healthineers's value through the roll-out of its laboratory diagnostics system Atellica, seen as a great hope for the business, before making a decision.

(Reporting by John Revill; Editing by Elaine Hardcastle)