A regular meeting of the Board of Directors of Power Machines chaired by Sergei Batekhin, Deputy Director General of Interros, was held on November 23, 2006.
Boris Vainzikher, Director General of Power Machines, presented objective vision of the company’s development till 2010 with account to the market look-out of the Russian power generation industry.
In the eye of Boris Vainzikher, the main development target of Power Machines till 2010 is preparation of the company to meet demands of the Russian power-generating companies that have started large-scale construction and technical re-equipment. According to the updated forecasts, Russian power generation market will require commission of the generating capacities of above 100 GW over the next 10 years, market size value is 100 bln. USD. Power Machines are planning to increase annual manufacturing capacity range from 8,8 GW in 2006 to 17 GW in 2011 to meet power generation requirements.
Power Machines have to hold leading positions on the Russian market and to become a strong world-wide player. It means to conquer status of the preferable supplier of RAO “UES Russia” power companies by creating decisions that meet requirements of the Russian power-generating companies best of all. Power Machines set a mission to hold their ground on the international market by gradual proportion of the Russian and export contracts 60:40.
Strategic vector of the company’s development in view of the market industry outlook speaks to the truth of Power Machines concept progress, approved by the Board of Directors on September 15, 2006. In this case the Board of Directors marked priority directions that clarify and complete this concept.
To execute the purposes it is necessary to solve a number of significant problems. First of all, we have to extend the product list of the produced equipment by manufacture of asynchronized generators, compensators and reversible hydro units for water-storage power plants, by increase of gas turbine capacity range, as well as by design of low-speed turbines with capacity of up to 1,700 MW based on our current technologies and on our possible technological co-operation with Siemens.
As part of this direction Rosatom and OJSC “Atomenergomash” are negotiating to arrange a joint powerful steam turbines (above 500 MW) enterprise. Power Machines and Siemens are developing a long-term partnership as part of the gas and turbine division in the field of gas and turbine technologies.
The Board of Directors of Power Machines voted unanimously to execute additional stock issue to meet investment requirements of the company. Approval of the additional stock issue parameters will be considered at one of the nearest meetings of the Board of Directors.
OJSC “Power Machines” will remain a public and liquid company and will direct the efforts to strengthen their positions on the Russian stock market and to promote corporate management level by information disclosure and by management activities with investors and minority shareholders.
The Board of Directors of Power Machines has also made a decision to call for a special General Meeting of Shareholders on 22 February 2007, the agenda of which will include issues of election of Board of Directors and Auditing committee of the Company, as well as approval of a new edition of Corporate Governance Code and internal documents, regulating activities of the Company's bodies.