OREANDA-NEWS. February 12, 2010. JSC Atomenergoprom acquired a largest machine engineering company Petrozavodskmash using the companies within its system. The deal was initiated by Atomenergomash.

To guarantee effective expenditure, Petrozavodskmash was acquired by an exchange of Petrozavodskmash shares for a minority share (7% of equity capital) of Atomenergomash plus an extra cash payment. The shares were bought from the Petrozavodskmash management. The parties agreed not to disclose the deal price.

Prior to the purchase, Atomenergomash conducted a thorough technical audit of the company’s facilities and determined that the plant’s production capacity and human resources are adequate for the production of a wide range of main and auxiliary equipment for nuclear power plants.

“By combining the competence of Atomenergomash and the production capacities of Petrozavodskmash, we will get another large vendor of equipment for nuclear power plants, including those to be located on the nuclear island. This deal represents the next step in the nuclear equipment market competition program that is intended to ensure high quality of the supplied products and efficient use of investments,” says Kirill Komarov, Chairman of the Board of Directors for Atomenergomash and executive director of Rosatom’s Nuclear Power Complex.

“The company has some unique facilities that allow launching production of critical equipment for nuclear power plants under construction,” notes Vladimir Kaschenko, General Director of Atomenergomash. He added that the companies of Atomenergomash Group have already made contracts with Petrozavodskmash totaling over 2 bln rubles to supply equipment for the nuclear island.

“I am sure that the expertise of Atomenergomash in production business development for nuclear power plants construction federal program will help Petrozavodskmash effectively integrate into the nuclear industry and provide extended supplies of high-quality equipment at a competitive price,” stresses Mr. Kaschenko.

Petrozavodskmash is a company with welding, mechanical assembly and metallurgy production facilities. The company has been in a continuous development process since its establishment in 1960, mastering new markets. Its major clients include paper mills, petrochemical facilities and power companies.