Power Machines OJSC and Toshiba Corporation sign documents to establish joint venture in Russia

Today in Amsterdam, the Netherlands, Power Machines OJSC and TOSHIBA Corporation have signed documents on the establishment of a joint venture (JV) to manufacture and supply power transformers in Russia, named as Izhora Transformers LLC. Power Machines and TOSHIBA respectively hold 50.01% and 49.99% of the JV. 

The documents have been signed by Takeshi Yokota, Corporate Vice President of TOSHIBA Corporation, and Igor Kostin, General Director of Power Machines OJSC. The total amount of investments into the construction of a new high-voltage equipment plant will be more than 5 billion rubles. 

In September 2011, Power Machines OJSC and TOSHIBA Corporation signed an agreement to create the joint venture and to build the plant for production and supply of power transformers in Russia. According to the achieved agreements, the Russian-Japanese joint venture will enable to solve the problems of comprehensive modernization of power grids on the basis of the most advanced and innovative technologies. The transaction has been ratified by all necessary antimonopoly authorities, including the Federal Antimonopoly Service of Russia and the European Committee. 

Federal Grid Company of Unified Energy System OJSC will act as the main purchaser of the equipment to be produced. Among potential consumers of the company's products are also power facilities of IDGC Holding OJSC, RusHydro OJSC, Rosatom State Corporation, generating companies, as well as operators of power grid networks of the CIS and Baltic countries. 

At present, following the results of tenders held, Advance LCC has been chosen to be the general designer for the new plant and SU-326 CJSC has been selected as the general contractor. Main plant equipment (including cranes, vacuum equipment and steel cutting lines) will be supplied by the leading European manufacturers. The new plant will be located in Metallostroy industrial area (Kolpino district of Saint Petersburg). 

The 22,000 square-meter Izhora Transformers plant is to include welding, winding, insulating and assembly line production facilities, as well as a testing center. It is to be put in operation by the end of 2013. Serial production is expected to begin in 2014. The product range of Izhora Transformers will comprise power transformers belonging to voltage class of 110 to 750 kV and having capacity from 25 to 630 MVA, including three-phase versions and product units weighing up to 400 tons inclusive.