Konstantin Zaytsev, Vice Chairman of Energy Committee of State Duma

– Acquisition of an asset like Energomash confirms Rosatom’s policy to demonopolize NPP construction market

Atomenergomash OJSC (part of Atomenergoprom OJSC) and the majority shareholders of Energomash (UK) Limited (Alexander Stepanov and Aleksey Plescheev) have signed a memorandum of mutual understanding giving 50% + 2 shares of Energomash (UK) Limited to Atomenergomash. The parties have agreed to finalize the price of the shares and to sign the buying-selling contracts in a month. By that time Atomenergomash will complete Due Diligence of Energomash Group. The money earned from the deal will be spent on the repayment of the Group’s debts to commercial banks. The remaining debt will be rescheduled through an agreement with the creditor-banks. The acquisition of a controlling stage in Energomash is part of Atomenergoprom’s policy to foster competition among suppliers of NPP equipment of long manufacturing cycle. Particularly, Atommash plant is supposed to become a new supplier of reactor equipment.

The acquisition of an asset like Energoamash has confirmed Rosatom’s policy to demonopolize NPP construction market and to foster competition among suppliers of equipment for nuclear reactors. Competition will benefit both the state and the consumers. For Atomenergomash Energomash is a very valuable asset: its Atommash plant in Volgodonsk will become a new supplier of reactor equipment.

For Energomash this deal is opening up wide opportunities to develop own production, to enlarge its output and to retain its personnel despite the crisis.

Note

Energomash (UK) Limited is a company of Energomash Group. It comprises Atommash (Volgodonsk), Belenergomash (Belgorod), Chekhovenergomash (Chekhov, Moscow region), Barnaul Kotelny Zavod and Uralelectotyazhmash-Uralgidromash (Yekaterinburg) as well as a number of engineering centers and construction and installation organizations. Energomash (UK) Limited also holds a 58% stake in Energo TPP, a company building gas-turbine low-power TPPs. Energomash Group is one of the leaders of Russia’s power machine building and manufactures equipment for different types of power plants. The target markets of the company are equipment for nuclear, thermal and water power plants, oil-gas and mining industries, metallurgy, railways, construction and other sectors. Energomash exports almost 20% of its products to the CIS, Asia and Europe.

The manufacturing enterprises and engineering centers of Energomash Group are situated in eight regions of Russia and employ a total of 12,400 people. The incorporation of the Group into Rosatom State Nuclear Energy Corporation will help it to fully use its industrial capacities and to avoid personnel reduction.