Power Machines Company allocates RUR 4.3 bln to finance its 2011 Investment Program

Power Machines’ 2011 Business Plan foresees allocation of RUR 4.3 bln to finance the company’s current year investment program, up by 22% against the 2010 investment program. Both company assets and borrowed funds are to be used to finance the program.

The 2011 investment program is the continuation of Power Machines' investment plan adopted in 2008 and aimed to create an advanced industrial enterprise equipped with upgraded, efficiently allocated assets, cut production costs, increase the company’s capacities, and launch new products with specifications that meet or outstrip the world analogues.

The 2011 agenda on investment includes the development of the company’s production, laboratory and test facilities, the intensification of R&D activity, and further implementation of the first phase of the construction project for Power Machines’ new generating equipment plant in Metallostroi industrial area (St. Petersburg, Kolpino district).

Construction work is currently being carried out in Metallostroi industrial area to build the first start-up complex destined to produce NPP-use low-speed and high-speed turbosets rated at up to 1,600 MW. The construction of the first start-up complex will have been completed by mid-2012; the production of new output is scheduled to be launched in 2013. With the new complex achieving its estimated capacity, the company's overall production capacity is supposed to reach 14 GW equipment produced annually (in 2011, 9 GW). The amount of financing of this line accounts for approximately 50% of the total investment budget funding for 2011.

Another important direction envisioned by Power Machines’ investment program is expansion of R&D activities.

At the moment the company is implementing a number of innovative projects aimed at creating new products with specifications that correspond to or outstrip the world analogues. These involve – development of a new NPP-use 1,200 MW low-speed turboset, designing of an advanced ultra-supercritical steam turbines for HPP and NPP applications, in-house 65 MW gas turbines, high-performance hydroturbine equipment for superpower HPPs located in Siberia and other regions of the world, machinery for storage hydroelectric power stations and etc.