Germany's Siemens to build 2 power plants in Libya

Berlin - Germany's Siemens says it has signed contracts worth some $824m to build two gas-powered electricity plants in Libya.

The Munich-based industrial conglomerate said on Monday that the plants will be built in Misrata and Tripoli and that the value of the contracts with the state-owned General Electricity Company of Libya includes long-term service agreements.

It said the deal will expand Libya's power generation capacity by about 1.3 gigawatts, but didn't specify in a statement when the new plants will start operation.

The deal comes weeks after Siemens AG announced plans to cut about 6 900 jobs worldwide at its power, gas and drives divisions, half of them in Germany. It pointed to a sharp decline in earnings amid increasing pressure from renewable energy sources.