RusHydro and Voith Hydro Signed Agreement on Joint Venture
OREANDA-NEWS. JSC RusHydro (ticker symbol: MICEX-RTS, LSE: HYDR; OTCQX: RSHYY) announces that it has signed an agreement with Voith Hydro on creation of a joint venture (JV) “VolgaHydro” LLC, aimed at manufacturing of hydroturbine equipment. The JV will be located in Balakovo city of Saratovskiy region, the construction works are expected to start in 2013. The document was signed by Evgeny Dod, Chairman of the Management Board of RusHydro, and Leopold Heninger, Chairman of Voith Hydro.
RusHydro will hold a controlling stake in JV. Voith Hydro will be responsible for operational management, and RusHydro will appoint the financial officer of JV. The companies will make the decisions on all important issues together. RusHydro’s share in the share capital will be 50% plus RUR 1 share, the share of Voith Hydro will be 50% minus RUR 1. The share capital will be equally paid by the companies (EUR 100 thousand at the exchange rate of the Central Bank of Russia). The economic efficiency of the JV will be achieved through manufacturing of the equipment for RusHydro and other companies in Russia and abroad, including cooperation under service agreements.
The JV should become a center for innovations, contributing to the development of science and machinery engineering, and resulting in safety of electricity generation, efficiency improvement of equipment manufacturing and environmental protection.
The agreement is a part of cooperation of one of the largest hydrogenerating companies in the world and the world leader in power equipment manufacturing. RusHydro and Voith Hydro already implemented the joint project at the Uglichskaya HPP and continue their cooperation at other plants, including Miatlinskaya plant in Dagestan.
Voith Hydro GmbH & Co.KG Company is a supplier of eco-friendly hydropower equipment and a world leader in designing and constructing hydropower plants. The Company offers integrated solutions for the turn-key installation of hydro-mechanical, turbine and generator equipment, auxiliary mechanical and electric systems, control systems, modernization and re-equipment services and providing the in-house manufacture of the main types of HPP equipment. Voith Hydro Company designs hydro-power turbines that completely eliminate machine oil ingress to water.