Silovie mashiny will provide orders for Ukraine enterprises

Russian newspaper Kommersant wrote, Silovie mashiny director general Boris Vainzikhir told about plans to involve Ukrainian enterprises to supply equipment necessary for modernization and construction of power plants in Russia.

The participants of market estimate the scope of Silovie Mashini's orders at a cost of USA$ 100-150 million this year, more than half of them will be for Turboatom.

Experts consider that cooperation of Silovie Mashiny with Ukrainian enterprises is an initial stage of preparations to buying assets of the Ukrainian power engineering companies.

On July 12 the meeting of Silovie mashiny director general Boris Vainzikhir and administrations of Turboatom, Electrotyazhmash and Energoproject was held in Kharkov, at which Vainzekher announced its purpose to fill actively Ukrainian enterprises by the order.

"A huge program for power modernization was developed in Russia. And we understand clearly that we need assistants in Ukraine", - Vainzekhir said.

Silovie mashiny also consider a possibility to deliver turbines for construction of hydroelectric power plant in Mexico together with Turboatom.

At the beginning of this year RAO "UES of Russia", the shareholder of Silovie Mashiny, told about large-scale plans for reconstruction of generating plants. In March RAO "UES of Russia" administration declared that the scope of orders would increase by USA$ 420 million and reach US $1 billion.

"Proceeding from work load of Silovie mashiny, it will have to manufacture a part of production through subcontract", - ZAO Kharkovautomatika director general Eugene Kisel told.

"Ukrainian manufacturers are ideal option for Russia. Our production is acceptable from technology viewpoint and it is cheaper by 40-50% than import analogue", - he added.

Kisel estimates the scope of Silovie Mashine's orders for Ukraine at least USA $ 150 million.

By opinion of analyst of Metropolis company Alexander Zhukov this scope doesn't exceed USA$ 120 million, one third of which will be for Turboatom. But it will be enough to increase Turboatom profit by 40%.

According to Vainzekher, more scope of work is expected for Ukrainian engineering corporations.

"About 20 GW of new power is planned to put into operation in Russian till 2011. We can manufacture only the half of necessary equipment", - he noted.

According to Electrotiazhmash information, total scope of orders for subcontractors will exceed USA $ 3 billion.

"If one third of this scope would belong to Ukrainian enterprises, they will become the leading exporters of Ukraine as metallurgic and chemical enterprises", - Electrotiazhmass press-center spoke with assurance.

By opinion of member of the Verkhovnaya Rada Fuel and Energetics Complex committee Vladimir Bronnikov, the orders for modernization of Russian power plants were received after signing the Protocol for cooperation between Ukratomprom (including Turboatom) and Rosatom.

"The Protocol wrote that Russian party would provide orders for Ukrainian engineering enterprises. Actually Silovie mashini was charged with this task.", - he noted.

Alexander Zhukov thinks that "Cooperation with Ukrainian enterprises under huge RAO UES of Russia's order will give a possibility to look out Ukrainian enterprises and choose the more attractive and necessary assets to be bought.

But Silovie mashiny head doesn't confirm interest in privatization of the Ukrainian enterprises yet.

SOURCE: AtomInfo.Ru

DATE: July 16, 2007

Topics: NPP, Russia, Ukraine