Power Machines Holds BOD Meeting

MOSCOW - Power Machines OJSC (RTS: SILM), Russia's leading manufacturer and equipment supplier for hydroelectric, steam, gas and nuclear generation plants, reports that its Board of Directors, meeting on 20 April, approved a management proposal concerning integration of Power Machines and Kaluga Turbine Plant OJSC (KTZ). It also entrusted preparation of a proposal on consolidation of the company’s control stock to the General Director of Power Machines. 

The planned integration is aimed at efficient development of Power Machines within the energy sector and expansion of the company’s capabilities particularly with turbines to a maximum capacity of 63 Megawatts, along with associated equipment. Among the most promising products with regard to integration were steam turbines of low and mid capacity, feed pumps and other auxiliary equipment.

The Board of Directors also considered a report on completion of the company’s budget for 2006. The Board approved a decision calling for the Annual General Meeting of shareholders to be held on 29 June 2007.

The AGM agenda is to include:
1. Approval of an order of work of AGM
2. Election of the Board of Directors
3. Election of an Auditing Commission
4. Selection of an Auditor of the company
5. Approval of the annual report for 2006, annual accounting report for 2006 including the P & L report
6. Distribution of the profits and losses for 2006 and dividends for 2006
7. Approval of future interested-party transactions between the company and Rosbank OJSC
8. Approval of a contract on an interested-party transaction between the company and TGK-4 OJSC
9. Approval of Addendum No. 2 to the contract for an interested-party transaction between the company and Siemens Aktiengesellschaft PG P32.

The Board of Directors approved interested party deals with TGK-9 OJSC and with Siemens AG.

The contract between Power Machines and TGK-9 provides for the supply of spare parts for a 60 Megawatt steam turbine at Chaikovskaya heat power plant. The contract with Siemens AG provides for the purchase of components for GTE-160 gas turbines produced by Power Machines for modernization of two power units of Mosenergo heating power plant No.27.

Kaluga Turbine Plant OJSC (KTZ) is a leading producer of turbines of low and mid- capacity in Russia, the CIS and Baltic countries. Currently KTZ produces more than 100 types of steam turbine and block turbogenerators. The state controls 26.9% in KTZ, while the remaining shares are owned by private investors. Among KTZ’s products with 0.5-40 Megawatt capacity are co-generation turbines, mechanical drive turbines, steam turbines for geothermal heat power plants, steam turbines for combined cycle plants, block turbogenerators and other products.