13 Nov 2010 13:58

FGC, Power Machines might involve Toshiba in building plant in St. Petersburg

MOSCOW. Nov 13 (Interfax) - OJSC Federal Grid Company UES (FGC) and OJSC Power Machines might bring Japan's Toshiba on board a project for building a plant in St. Petersburg that will make high-voltage equipment for power grids.

FGC reported that a company delegation led by CEO Oleg Budargin was on hand at the 4th Russian-Japanese investment forum in Tokyo on November 12.

During that forum, Budargin said his company was very interested in working with Power Machines and Toshiba to build a transformer equipment factory.

FGC and Power Machines signed an agreement to work together on this project back in mid-June, the grid company told Interfax.

Power Machines told Interfax that Toshiba is definitely among the possible foreign partners for the project, but there are no reports of any specific agreements having been struck at this time.

It is estimated that investment in the construction project will be about 5.4 billion rubles, and that the facilities will open for business in 2013. FGC is prepared to supply up to 30% of the new plant's order volume.

The plan is to locate the production facilities on Power Machines premises in the town of Metallostroy in St. Petersburg's Kolpinsky region, where the machinery-building outfit has begun equipping its own new plant to produce power equipment.