RUSNANO and Power Machines Agree to Cooperate in Localization of Production of Wind Turbine Equipment

26 April 2017

RUSNANO and Power Machines PJSC signed a memorandum of understanding under which both companies are interested in the joint implementation of the project (hereinafter, the Project) on production of wind turbines components on the Russian territory. The parties have reached an agreement in principle on the parity financing of the production of wind turbine components.

RUSNANO with potential partners plans to participate in the project on the construction of wind parks, within which a foreign supplier of wind turbines from among the world's largest vendors will be selected. The joint Project on the production of wind turbine components with Power Machines PJSC is planned to be implemented together with a selected vendor and (or) its OEM-manufacturers. One of the main conditions of the selection of the supplier is the equipment production localization program on the Russian territory. The localization level will increase annually and should reach 65% by 2019.

As previously reported, RUSNANO intends to invest in localization projects up to 1 billion RUR. RUSNANO is considering several sites on the territory of Russia to establish the production of wind turbine components within the framework of implementation of the localization plan.

Power Machines OJSC is ready to be a Russian technological partner of the Project. It is planned that at the TKZ plant Krasny Kotelshchik in Taganrog (part of Power Machines Group) the production of towers and (optionally) the assembly of gondolas will be organized. The unique competitive advantage of the Project planned to be implemented may be the participation of Severstal. The Parties are discussing terms for the long-term delivery of steel sheets

to produce wind turbine towers weighing up to 180 tons each by Severstal. The production of generators for wind turbines at one of Power Machines production sites is also being considered.

Power Machines PJSC is a global power engineering company, which is in the top ten industry leaders in terms of the volume of installed equipment. The company produces solutions for thermal, nuclear, hydropower engineering, the electric grid complex, industry and transport.

Additional information

Reference

RUSNANO Joint-Stock Company was founded in March 2011 through reorganization of state corporation Russian Corporation of Nanotechnologies. JSC RUSNANO contributes to implementation of the state policy on the development of the nanotechnology industry by investing directly and through investment funds of nanotechnology in financially effective high-technology projects providing the development of new production facilities in the Russian Federation. Its primary investment focus is in electronics, optoelectronics and telecommunications, healthcare and biotechnology, metallurgy and metalwork, energy, mechanical engineering and instrument making, construction and industrial materials, chemicals and petrochemicals. 100 percent of RUSNANO’s shares are state owned. Thanks to RUSNANO’s investments, there are currently 87 factories and R&D Centers opened in 32 regions in Russia.

Management of assets of RUSNANO JSC is carried out by Limited Liability Company established in December 2013, RUSNANO Management Company. Anatoly Chubais is the Chairman of its Executive Board.

Work to establish nanotechnology infrastructure and carry out educational programs is fulfilled by RUSNANO’s Fund for Infrastructure and Educational Programs, which was also established during the reorganization of the Russian Corporation of Nanotechnologies.