Inter RAO Group General Electric

General Electric, Inter RAO and United Engine Corporation create JV on producing Gas Turbines in Yaroslavl region

16.09.2011

Sochi. The 16th September. Interfax - Inter RAO (РТС: IRAO), United Engine Corporation and General Electric signed a construction contract of a plant on production of low-emission Gas Turbines 77 MW in Yaroslavl region.

As the correspondent of "Interfax" reported from a signing ceremony, the parties have signed the document during the Sochi forum in the presence of the prime minister Vladimir Putin.

Shares of the parties in JV will be divided in the following way: 50% - General Electric, 25% - "Inter RAO UES", 25% - UEC. Council of directors of the joint venture will consist of two representatives of GE, one representative of "Inter RAO" and one representative of UEC.

The head of "Inter RAO" Boris Kovalchuk explained the plans of joint venture’s future activity: in one case the joint venture will have an exclusive right on supplies of equipment, and in other- "Inter RAO" together with GE and its enterprises making similar turbines in other regions will supply the equipment. Besides, in some markets the joint venture will have the right to deliver turbines, and the head company GE provide the maintenance. The head of "Inter RAO" stressed the point that in first two cases, the joint venture company has the right for the maintenance of the supplied production.

Analyzing possible sales markets, "Inter RAO" has paid particular attention to Russia where energy companies now realize large-scale programs for input of the new generating capacities on which the JV’s activity will be focused. Upon that generally the equipment will be intended for the territorial generating companies producing both electro-, and heat power. "We find the main part of sales here", - told B. Kovalchuk adding that the joint venture will also be oriented in the market of the CIS countries and countries of the former USSR. He has also reminded that "Inter RAO" has projects, including Latin America where the production of the joint venture could also be supplied. "In the long term the share of an exporting potential of our plant should increase", - said the head of Russian company.

He explained the reason of the choice of production of turbines of this type that by the time of opening the plant according to the analysis of power holding such turbines will be in favor. Nowadays, according to him, the considerable part of the equipment for big blocks within plans for capacity commissioning is already ordered. "The segment between small generation and big engine isn't occupied therefore exactly we have entered this niche", - he explained.

"It is one of the most interesting products which can be used in generation, and this market is rather big", - said GE’s head Jeff Immelt.

At the same time, according to B. Kovalchuk, there is already a number of arrangements for sale of turbines, the part from which is noted in preliminary agreements.

Source:  Interfax