OREANDA-NEWS. January 17, 2007. Russia’s OJSC “Atomenergomash” and French Alstom have successfully completed transaction to establish joint venture "Alstom Atomenergomash" including technology transfer to serve nuclear power plant markets

On January 17, 2008 OJSC “Atomenergomash” and French group "Alstom" have successfully completed all legal and financial requirements to establish their  “Alstom Atomenergomash” LLC joint venture in order to meet growing demand in the nuclear power plant market for power generation both in Russia and abroad. Atomenergomash and Alstom will together invest a total of 300 million Euros in the form of assets and cash and are increasing the initial authorized capital by 100 million Euros.

Under the terms of the joint venture, OJSC “Atomenergomash” is contributing a 60 000 square meter at the equipment manufacturing plant “ZiO-Podolsk located in the city of Podolsk, close to Moscow as well as a 70 000 square meter land plot, which are owned now by LLC “Alstom Atomenergomash”.

Concurrently Alstom transferred technology licenses related to the manufacturing of its half-speed, high-capacity (1200–1700 MW) “Arabelle” turbine to Alstom Atomenergomash giving the joint venture company exclusive rights to the manufacturing and sale of half-speed “Arabelle” turbines in Russia as well as for power plant projects abroad using Russian nuclear technology. 

The first turbine to be manufactured by the newly created company is scheduled for 2011. By 2013, the joint venture will be able to manufacture three turbines per year. Annual revenue is expected to reach 1 billion euros. Alstom Atomenergomash will actively participate in the first tenders and plans to take advantage of project execution to implement technology transfer, investment plan, development of its activity in the Podolsk region and staff training.

The newly established joint venture represents a key strategic move for both companies. "The joint venture established between Atomenergomash and Alstom, the world leader in nuclear conventional islands, is the first of its kind in the Russian post-Soviet history”, stated Kirill Komarov, Deputy General Director of OJSC “Atomenergoprom” and Chairman of Board of Directors of OJSC “Atomenergomash”. “Atomenergomash is the first Russian company to have formed a joint venture with a foreign company of such scale allowing it to acquire the best available Western technology”, — he added. “By year 2013 we plan to manufacture almost 100% of half-speed turbines in Russia and become the only  supplier of the complete range of equipment for nuclear power plants”, according to Alexander Balashov, General Director of the JV Alstom Atomenergomash.

LLC “Alstom Atomenergomash” was registered on July 20, 2007 in city of Podolsk close to Moscow region. The joint venture was founded by OJSC “ZiO-Podolsk, which holds 51% of LLC authorized capital and French company Alstom, which owns 49% of the joint venture capital.

OJSC “Atomenergomash” is a holding company specialized in manufacturing of equipment for nuclear and heat power production. In particular, the holding company includes machine producing plant “ZiO-Podolsk”, engineering company “Ziomar”,OJSC “Intelenergomash”, LLC “Stalenergomash” and a number of other assets. Atomenergomash is 100% daughter company of OJSC “TVEL”, being part of OJSC “Atomenergoprom”. Revenue in 2007 will approximately amount to RUR 10.2 bln.

Alstom  is a global leader in the world of power generation and rail infrastructure and sets the benchmark for innovative and environmentally friendly technologies. Alstom is the world leader in nuclear conventional islands, with more than 175 islands either already in service or in the course of being built in twelve countries around the world, including France, South Africa, China, South Korea and Sweden. Alstom technology is present in more than a quarter of nuclear conventional islands around the globe.