RusHydro completes divestment of its share in JV with Voith
February 8, 2018. Moscow, Russia. PJSC RusHydro (ticker symbol: MOEX, LSE: HYDR; OTCQX: RSHYY) announces divestment of its 40% share in VolgaHydro, a hydropower equipment manufacturing joint venture in the Saratov region, to Voith. The agreement has been signed by Nikolay Shulginov, Chairman of the Management Board – General Director of RusHydro, Leopold Heninger, CEO and President of Voith Hydro Europe and Guenter Engelbutzeder, General Director of VolgaHydro.
Upon closing the deal, Voith, an international mechanical-engineering company, assumes full ownership of the hydropower turbine manufacturing plant. Back in October 2018, RusHydro’s Board of Directors approved divestment of the company’s share in VolgaHydro for RUB 450 mn. Federal Antimonopoly Service of Russia approved the deal shortly. The sale price determined by an independent appraiser fully covers RusHydro’s investment into the joint venture.
The parties officially launched the project in 2011 at the St. Petersburg Economic Forum where RusHydro and Voith signed an agreement on strategic cooperation. At the current stage the plant has enough orders to start production. An opening ceremony will take place in the coming months.
Nikolay Shulginov commented: “This deal concludes our meaningful and longstanding cooperation. To date, RusHydro has successfully accomplished its objective to localize production of hydropower turbine equipment in Russia. Construction of the facility allowed to transfer experience of one of the world’s leading hydro turbine manufacturers to our country. Voith’s hydropower equipment is already employed on Miatlinskaya, Uglichskaya and Saratovskaya HPPs and is currently being installed on Zaramagskaya HPP-1, which is scheduled for launch this year. The sale of share has been initially planned and fully complies with the Group’s strategy on divestment of non-core assets as its further involvement in the project is deemed as non-core business. I am confident the facility’s production capacities will be utilized by both, Russian and foreign customers.”
Leopold Henninger added: “Following acquisition of RusHydro’s share in VolgaHydro, Voith is set to become Russia’s sole local partner in the hydropower industry as the company has been able to localize hydropower equipment production in Russia. The plant will reach full operational capacity in June 2019 with a portfolio of orders for years to come.”
Today RusHydro and Voith have signed an additional agreement on modernization of hydropower turbines of Sratovskaya HPP. The generating units will be updated following installation of four new turbines at the facility.
Within the scope of the agreement signed in 2011, Voith Hydro is already supplying equipment to Saratovskaya HPP. Comprehensive modernization of the hydropower plant includes replacement of 21 hydropower turbines as well as generating unit number 24. The new turbines meet the toughest environmental and safety standards and contribute to improvement of operational efficiency of power generating equipment in Russia. The facility’s installed capacity will increase by 10% following modernization. A portion of new components and pre-assembled blocks will be manufactured at the VolgaHydro plant where maintenance of equipment will take place as well. Saratovskaya HPP project is a part of Rushydro’s comprehensive modernization program of hydropower equipment.
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