Power Machines and TOSHIBA Corporation have completed the establishment of Joint Venture

On May 29th in Amsterdam, the Netherlands, the final stage of establishment of OJSC Power Machines and TOSHIBA Corporation Joint Venture in Russia, LLC Izhora Transformers, took place.

The parties signed a final package of documents related to JV. Power Machines and TOSHIBA hold respectively 50.01% and 49.99% shares of the JV.

The project execution started in September 2011, when parties signed the Joint Venture Agreement. On April 5th of 2012 Power Machines and TOSHIBA Corp. executed the first phase of the transaction.

The total amount of investments into the construction of a new high-voltage equipment plant, located in the industrial area of “Metallostroy” (Kolpinsky district of Saint-Petersburg), will be more than 5 billion rubles. The plant is scheduled for start-up by the end of 2013.

The product range will comprise power transformers belonging to the voltage class of 110 to 750 kV with a capacity from 25 to 630 MVA, including three-phase types and product units weighing up to 400 tons inclusively.

The JV will make it possible to solve the problems of comprehensive modernization of Russian main power grid network on the basis of the most advanced and innovative technologies.

At present stage, LLC Izhora Transformers conducts the construction of the production site and carries out the purchasing of manufacturing equipment. Besides this, the works on manufacturing and design technology transfer are being executed in accordance with Technology License Agreement, signed by the parties in April 2012.