OREANDA-NEWS. December 6, 2007. Vladimir Palikhata, a businessman from Russia, expanded his sphere of activities by opening its representative office in Kyiv. Following the purchase of production assets in Ukraine (Electromashina OJSC, Large Electrical Machines CJSC (LEM), Novakakhovka Electrical Machines Engineering LLC and Etal scientific and industrial association) Vladimir Palikhata, who became famous by his active M&A in Russia, as the manager of Sphere investment company decided to set up in Ukraine a representative office of Rosenergomash concern, UFC-Capital reports.

Rosenergomash entered the Ukrainian market in summer 2007, when it purchased from a group of businessmen (from St. Petersburg) Kharkov-based Electromashina OJSC, producing DC motors, Large Electromechanical Machines CJSC, producing synchronous and non-synchronous electrical motors, and Novokakhovka Electrical Machine Engineering LLC, producing non-synchronous electrical motors. The two last ones were created on the basis of Yuzhelectromash’s assets. Rosenergomash already incorporated Ulianovsk-based Contactor OJSC – the largest producer of low voltage switching equipment in Russia, therefore, the Ukrainian-based assets perfectly fitted into the business owned by Vladimir Palikhata.

The latest acquisition of Rosenergomash in Ukraine became Etal scientific and production association (Kirovogad), producing relays, contactors, switches and low-voltage equipment.

According to Mr Palikhata, the aggregate turnover of the Ukrainian companies of the concern in 2007 will amount to about $75 mn, and in 2008 it is expected that the turnover will be increased to $130  mn. Next year, about $6 mn will be invested into equipment modernization and new technologies at LEM CJSC and Etal. 

To all appearances, Ukraine becomes a strategic position for Rosenergomash, as according to Mr Palikhata, now they are carrying out negotiations with Siemens Ukraine on a joint-venture set up, which principal task will be to sell and promote a drive engineering package, consisting of Yuzhelectromash products and production control system of Siemens. Further on, this drive engineering package will be promoted in the Ukrainian market.

Besides, the concern is going to acquire a number of Ukrainian enterprises next year. "I guess that in the year to come we shall buy about 5-7 electrical industry enterprises, and for their acquisition we are to allocate some $150 mn from our own funds. We also have very ambitious plans in respect of other CIS-countries – I presume that it is about $0.5 bn. Nevertheless, it is still premature to talk about extent of their realization," Mr Palikhata said. Still, one may easily guess at least one of such entities – the state-owned Kharkov Electromechanical Factory. Presently, Mr Palikhata is trying via bankruptcy procedure to gain control over the assets of this state-owned company. In the middle of July, Kharkov region economic court started a bankruptcy case against this company and introduced a procedure for its assets disposal. The initiator of the bankruptcy became Yuzhenergomash LLC (Novaya Kakhovka), which Mr. Palikhata had inherited from businessmen from St. Petersburg. At the moment, the entities of this Russian millionaire are actively buying the accounts payables of the company (total payables – UAH 45 mn) to form the creditor committee. However, it would be difficult to introduce a reorganization procedure at this Kharkov-based factory, as this company is in the list of entities not subject to privatization.