Wood Group has said it is forming a joint venture (JV) with German industrial firm Siemens to create a global rotating equipment service business.

The oil services firm, which is based in Aberdeen, said some of its maintenance and power operations would be transitioned into the agreement with Siemens' TurboCare unit.

TurboCare designs gas and steam turbines and generators, as well as offering repairs services.

It is understood the venture will have around 4,500 employees, while Wood Group estimated an annual revenue of around £623m for the new business.

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It added that the venture would strengthen the future prospects of its gas turbine activities.

Wood Group GTS chief executive Mark Dobler will transfer from the group's rotating equipment division to lead the new business.

He said: "The JV will bring together Wood Group's capabilities in the areas of asset operations, maintenance, risk management and life-cycle optimisation with the aftermarket design, repair and manufacturing capabilities of TurboCare to deliver greater flexibility, greater market reach and an expanded footprint to service customers.

"The JV will be a significant integrated rotating equipment service provider to the global power generation, oil and gas and industrial sectors."

Wood Group will own 51% of the venture.

The agreement is subject to regulatory approval and is expected to be completed in the first quarter of 2014.

(JP/CD)