Alstom and Atomenergomash finalize partnership
02 July 2007
French engineering group Alstom and Russia's Atomenergomash have finalized details of their joint venture for the manufacture of the conventional islands of Russian nuclear power plants.
Documents relating to the formation of the partnership were signed in Paris on 29 June in the presence of Sergey Kiriyenko, head of Russia's Federal Atomic Energy Agency (Rosatom), Alexander Adveev, Russian Ambassador to France, and Patrick Kron, Alstom's chairman and CEO.
The joint venture - which will be 51% owned by Atomenergomash and 49% by Alstom - will manufacture the entire conventional island of nuclear power plants (essentially most of the nuclear power plant except the reactor), drawing on Alstom's 'Arabelle' half-speed turbine technology. The partnership - to be known as Alstom Atomenergomash LLC - will be based at Podolsk, near Moscow.
The two partners will together invest Eur 300 million ($405 million) in the joint venture in the form of assets and cash.
The joint venture will focus on the Russian nuclear power plant market, but will also compete in the international market. Turbines to be manufactured by the joint venture are expected to be supplied to nuclear power plants to be built under the federal program 'Development of Nuclear Power and Industry Complex for 2007-2010 and until 2015'. Under the program, Russia plans to double its nuclear power capacity by 2030.
Atomenergomash (short for Atomnoye i Energeticheskoye Machinostroyenie (Nuclear and Power Generation Machine Engineering)) is a subsidiary of Atomenergoprom, the state-owned company responsible for producing equipment for Russia's civil nuclear program. Atomenergomash is part of the Rosatom system. The company specializes in the production, supply, installation and repair of equipment for nuclear power plants.
Further information
Alstom
WNA's Nuclear Power in Russia information paper
WNN: Alstom forms joint venture with Russia's Atomenergomash