OREANDA-NEWS. February 18, 2010. A new transformer plant could allow Power Machines to expand its product range and enlarge the volume of its business operations.

It was reported on February 17 that Power Machines and the Federal Grid Company were to build a new transformer plant in Kolpino, Saint Petersburg. Total investments into the project are projected at USD 142 million; project implementation is scheduled to take 2.5 years.

We are upbeat on Power Machines’ plan to extend operations by expanding into other segments of the energy machinery market. At present, Power Machines is the largest Russian manufacturer of combined-cycle electricity generation turbines. After coming onto the transformer market, the company will get an opportunity to offer additional equipment and services to turbine purchasers. In our opinion, this could permit Power Machines to take control of a significant portion of the transformer market.