FGC UES and Power Machines sign Cooperation Agreement

The parties have agreed to establish cooperation in creating and maintaining production of high-voltage equipment for power grids in St. Petersburg, and also to promote research and technology collaboration aimed at enhancing capacities for the electrical machinery production in Russia.
The high-voltage equipment plant is planned to be built at Power Machines’ site in Metallostroi, an industrial area located in St. Petersburg’s suburb district of Kolpino. So far, Power Machines commenced the construction phase of the power equipment plant project. The investment into construction of the power equipment plant amounts to 5.4 bln. rubles.
Under the Agreement, in the second half of the current year, Power Machines company is anticipated to choose a technological partner from among world’s leading producers of power machinery to establish a joint venture for the high-voltage equipment production.  According to the document, production launch is scheduled for 2013.
FGC UES, in its turn, will provide technical requirements established for power equipment to be used at the National Power Grid’s facilities, and will also assist in selecting a technological partner.
Under the terms of the Agreement, FGC UES plans to sign with the joint venture a long-term tender-based contract for no less than five years as stipulated by the effective legislation of the Russian Federation. The responsibility areas of the joint venture include ensuring competitive quality and price policy as well as effective delivery time. Also, FGC UES will assist in carrying out certification tests for the JV's products in line with the company's standards and regulations. Power Machines company undertakes to manage maintenance support for equipment supplied to FGC UES and to provide training for FGC UES’ personnel on how to perform service operations, repairs, and status monitoring.