OREANDA-NEWS. During its Apr 25 meeting the Supervisory Board of the State Corporation “Bank for Development and Foreign Economic Affairs” (Vnesheconombank) decided to grant Alstom Atomenergomash Russian-French JV a 550mln EUR long-term credit so it could establish a production of low-speed turbines and 1000–1700MW generators for nuclear power plants.

The money will be spent on the purchase of special equipment for Podolsk-based JV. The credit will allow Alstom Atomenergomash to quickly fulfill its task to supply the new NPP construction projects with turbines of international quality.

This decision has become one more big step in the active investment policy carried out by Vnesheconombank in the framework of the Russian Government’s program to support the priority sectors of the national economy, to create modern high-tech productions and to develop infrastructure projects.

To remind, on Jan 17, 2008 OJSC “Atomenergomash” and French group "Alstom" established “Alstom Atomenergomash” LLC joint venture in order to meet growing demand in the nuclear power plant market for power generation both in Russia and abroad.

Atomenergomash and Alstom will together invest a total of 300 million EUR in the form of assets and cash and are increasing the initial authorized capital by 100 million Euros.

Under the terms of the joint venture, OJSC “Atomenergomash” is contributing a 60 000 square meter at the equipment manufacturing plant “ZiO-Podolsk located in the city of Podolsk, close to Moscow as well as a 70 000 square meter land plot, which are owned now by LLC “Alstom Atomenergomash”.

Concurrently Alstom transferred technology licenses related to the manufacturing of its half-speed, high-capacity (1200–1700 MW) “Arabelle” turbine to Alstom Atomenergomash giving the joint venture company exclusive rights to the manufacturing and sale of half-speed “Arabelle” turbines in Russia as well as for power plant projects abroad using Russian nuclear technology. 

The first turbine to be manufactured by the newly created company is scheduled for 2011. By 2013, the joint venture will be able to manufacture three turbines per year. Annual revenue is expected to reach 1 billion euros. Alstom Atomenergomash will actively participate in the first tenders and plans to take advantage of project execution to implement technology transfer, investment plan, development of its activity in the Podolsk region and staff training.

LLC “Alstom Atomenergomash” was registered on July 20, 2007 in city of Podolsk close to Moscow region. The joint venture was founded by OJSC “ZiO-Podolsk, which holds 51% of LLC authorized capital and French company Alstom, which owns 49% of the joint venture capital.