Alstom and RusHydro Start Joint Construction of a Hydropower Equipment Manufacturing Plant in Bashkortostan
JSC RusHydro (ticker symbol: MICEX-RTS, LSE: HYDR; OTCQX: RSHYY) announces beginning of a joint construction with Alstom of a hydropower equipment manufacturing facility in the Republic of Bashkortostan. The ceremony was attended by Deputy Chairman of the Government of the Russian Federation Igor Sechin, President of the Republic of Bashkortostan Rustem Khamitov, RusHydro's CEO Evgeny Dod and Chairman of Alstom's Renewable Power Sector Jérôme Pécresse.
Earlier, RusHydro and Alstom set up a 51/49 joint venture (JV), JSC AlstomRusHydroEnergy. Under the terms of the agreement, Alstom will contribute to the JV advanced operational management practices and technical know-how, and guarantees post-commissioning support.
Total investment in the plant will amount to EUR 125 mn. The first tranche of EUR 11 mn will be used for construction works, purchase of equipment, recruitment and training of personnel.
The start of production is scheduled for 2014. The plant will manufacture main power generation equipment for small (up to 25 MW), mid-sized hydropower plants (up to 100 MW) and pump storage plants (up to 150 MW), as well as auxiliary equipment.
The plant will be a cornerstone of a multifunctional technical park in Bashkortostan with the aim of creating a research and manufacturing cluster and development of SMEs in the republic. One of the major goals of the project is localization of manufacturing of power equipment and establishment of reliable and competitive vendors in Russia.
The information in this press release may contain projections or other forward-looking statements regarding future events or the future financial performance of RusHydro. You can identify forward looking statements by terms such as "expect," "believe," "anticipate," "estimate," "intend," "will," "could," "may" or "might," the negative of such terms or other similar expressions. We wish to caution you that these statements are only predictions and that actual events or results may differ materially from these statements. We do not intend to update these statements to reflect events and circumstances occurring after the date hereof or to reflect the occurrence of unanticipated events. Many factors could cause the actual results to differ materially from those contained in our projections or forward-looking statements, including, among others, general economic conditions, our competitive environment, risks associated with operating in Russia, rapid technological and market change in our industries, as well as many other risks specifically related to RusHydro and its operations.
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