TGC-1 creates repairs and maintenance JV with ElectroCentroMontazh

Февраля 07, 2011

JSC “TGC-1” and JSC “ElectroCentroMontazh” announce the establishment of a special-purpose repairs and maintenance (R&M) joint venture (JV) LLC “TGC-1-Service”. The new company’s focus will be R&M of the main and auxiliary equipment of TGC-1’s combined heat and power plants and hydroelectric plants and that of other electric utilities companies of the North-West of Russia.

The JV also seeks to supply services of maintenance and troubleshooting of equipment, modernization and upgrade of power facilities.
The rationale behind the creation of TGC-1-Service is optimization and improvement of the quality of repairs of TGC-1 plants.
Dmitry Zaitsev, who had been Deputy Chief Engineer of TGC-1, was appointed General Director of the JV.
The personnel of TGC-1-Service will be primarily hired from the R&M personnel of TGC-1 – over 450 workers will be transferred to the JV.
TGC-1 also assumed an obligation to secure a specified amount of subcontracts to TGC-1-Service for a period of 2011-2012. ElectroCentroMontazh will provide financing and technological support to the JV.
The decision to create a special-purpose company was made after thorough examination of different options to optimize the R&M program of TGC-1. Currently the competition on the regional market of power facilities R&M is underdeveloped, which negatively affects the quality of work. The regional market has an explicit deficit of service companies with qualified personnel, modern equipment, in-house production facilities and expertise in using advanced technologies for maintenance and repairs.
The total investment is estimated at RUR 130-150 mn during 2-3 years. TGC-1 deems it inexpedient to finance such investment to develop non-core business, especially when a large-scale investment program to upgrade and build new power facilities is underway. This is why the Board of Directors decided to cooperate with a company that has adequate financial resources and expertise to carry out R&M and upgrade of power facilities. The subsidiary of ElectroCentroMontazh – CJSC “ECM-Service” will be a partner of TGC-1 in the JV.