Leader of Russian power engineering does not rest on its laurels - Power Machines
OJSC Power Machines is the leading Russian manufacturer and supplier of complex equipment solutions for thermal, nuclear, hydraulic and gas-turbine power plants. The company is ranked in the list of hundred largest enterprises in Russia.
Power Machines company was established in the year 2000. Today it is a joint venture combining technological, industrial and intellectual resources of six world-famous Russian enterprises: Leningradsky Metallichesky zavod (established in 1857), Electrosila (1898), Turbine Blades’ Plant (1964), Kaluga Turbine Works (1946), Reostat Plant (1960) and Energomachexport (1966). At present, OJSC Power Machines is the largest manufacturer of power equipment in Russia. The company specializes in the delivery of complex solutions for the power industry including engineering, manufacturing, installation, maintenance and modernization of equipment for thermal, nuclear, hydro and gas turbine power plants. 60% of all installed equipment at power plants in Russia and CIS countries had been manufactured by the Power Machines company. In addition, the company is active on the markets of India, Vietnam, China, Latin America, Africa and other countries. In order to illustrate the scale of the company’s performance it is crucial to mention that during the existence of Power Machines and its member enterprises equipment of a total capacity of 300,000 MW has been manufactured. It is over 2700 steam turbines, 2550 turbo generators, 700 hydraulic turbines, 600 hydro generators. All these machines operate successfully on four continents in 57 countries worldwide.
Commercial activity
At the beginning of 2010 the total of orders received by Power Machines company amounted to 3,653 billion dollars, that is 13% more than in January 2009, considering that the company was working in the conditions of global financial crises. The volume of contracts concluded during the last year amounted to 1,595 billion U.S. dollars, 26% of the total amount is attributed to service contracts. The domestic market has always been the main priority for OJSC Power Machines. In recent years, large supply contracts have been concluded with Novovoronezh NPP-2 and Leningrad NPP-2, which are being constructed as a part of Russian program “NPP-2006”. Contracts have been signed to assemble and supply power equipment for Adlerskaya TPP, Urengoi, Cherepovets and Kharanorskaya TPPs, Right Bank and South thermal power plants in St. Petersburg. The company pays special attention to the production of hydro-generating equipment for Sayano-Shushenskaya HPP, that is recovering from a disaster. Power Machines company cooperates with OJSC RusHydro, which incorporates the majority of Russian hydroelectric power plants. The contracts for construction of Boguchanskaya HPP and Zagorsk PSPP-2 and modernization of Zhigulevskaya and Saratov hydroelectric power stations are being carried out. Service contracts have been signed with Rostov nuclear power plant and OJSC Mosenergo. Contracts for the modernization of installed equipment have been concluded with Krasnoyarsk, Lesogorskaya and Svetogorskaya HPPs and Kirishskaya thermal power plant. OJSC Power Machines exports power equipment as well. Having successfully completed the production of equipment for units with capacity of 1000 MW at Tianwan NPP in China and Kudankulam in India, Power Machines company has begun to fulfill the order for the Belene NPP in Bulgaria. The company manufactures and delivers equipment for the construction of new units and upgrade of existing units at Sipat and Barh TPPs (India), Bitola TPP in Macedonia, Ramin TPP in Iraq, Pljevlja TPP in Montenegro, Djerdap-1 HPP in Serbia and many others.
Production activity
In 2009 production output of OJSC Power Machines increased by 40% in comparison with the previous year’s figures and amounted to 30,272 billion rubles. The company manufactured turbine equipment of total capacity of 5,5 GW and generating equipment of capacity 7,2 of GW. Increase of production output can be attributed to the growing demand for equipment for steam-gas plants, production of powerful hydraulic equipment, execution of orders for manufacturing of equipment for thermal power plants, and the growing number of the service agreements. Power Machines company is not going to stopping at that. The production program for the current year stipulates further increase of output. It is planned to manufacture turbine equipment of capacity up to 7,3 GW.
Financial data
Excellent production figures are supported by financial ones. The revenue of the company in 2009 increased by 41% compared to the results from 2008 and amounted to 1.852 billion US dollars. Gross profit reached 473.857 million US dollars, which is 1.8 times higher than gross profit of 2008. The company made a net profit of 193.281 million US dollars, which 2,4 times higher than net profit of 2008 than it was 79.626 million US dollars. The growth in financial performance was significantly influenced by the diversification of order portfolio, increase of capacity exploitation and volume of shipments of manufactured equipment, as well as the realization of complex measures aimed at improving productivity and reducing costs.
Innovation
Modern research facilities and advanced technologies allow the company to offer its customers technically reliable and cost-effective solutions. Power Machines is the leader in the production of high-speed turbines for nuclear power plants (with rotor speed of 3000 rpm). However, analysis of the market and world trends have shown that in the near future the demand for low-speed high power machines will increase (over 1000 MW and a rotor speed 1500 rpm). Therefore the company has developed a project of modern low-speed turbine generator, which includes a turbine and a generator, with capacity of 1200 MW. According to the plans already in December 2013 Power Machines company will be able to offer its potential customers new high quality modern equipment for power plants both with low-speed or high-speed performance. The company intends to implement a sample of a newly developed gas turbine GTE-65 at Mosenergo TPP-9. It is planned to implement measures that will ensure operation of gas turbines GTE-160 at temperatures below minus 40 degrees, increasing their power at the same time up to 190 MW. These turbines are produced by Power Machines under the license of Siemens. In the field of hydro-turbine construction Power Machines is developing three promising projects: the creation of hydraulic turbine equipment for heavy-duty hydroelectric power plants in Siberia and other regions of the world; the development of equipment for PSPPs; and the construction of effective water turbine of Kaplan type, which would be harmless for river ecology. The first project is unique. A schematic design has already been completed for the Evenki HPP as a part of realization of the first project. Development of a new generation of equipment for the PSPPs will ensure a maximal increase in operating speed of pump-turbines. This will significantly reduce the size of PSPP blocks, and therefore costs of the construction of such stations. OJSC Power Machines also plans to construct modern and efficient turbo and hydro generators, excitation systems, and electric machines for various industries.
Corporate strategy
The main strategic goals of Power Machines are the preservation and strengthening of the status of national industry leader in power engineering and the strengthening of position on the global market, especially in the priority regions of South and Southeast Asia, Latin America, the Middle East. In order to achieve these goals the shareholders of Power Machines have decided to increase the production capacity of the company through modernization of existing production areas, and by building a new factory in the suburbs of St. Petersburg. This new plant, based on the most modern technologies will allow to produce new types of equipment for the power industry, to ensure high product quality, to increase technological capabilities and productivity, to optimize exploitation of production and auxiliary areas, and to reduce the operating costs of production. Total investment in construction of the first unit is over 6 billion rubles. Low-speed turbine for nuclear power plants, which is a new product for Russian power engineering, will be manufactured at the new plant. The plant will incorporate a unit for the production of turbines and turbine generators, an acceleration and balancing stand, a hardware system, and objects of engineering infrastructure. The production program of the new plant stipulates manufacturing of two low-speed and two high-speed steam turbines per year with capacity up to 1600 MW each, and of four turbo-generators of the same capacity. The construction project of Power Machines is considered strategic by St. Petersburg’s city authorities and its implementation has already started.
Written by Elena Rozhko
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