Bloomberg News

Alstom Predicts Russian Power Market May Reach 13 Billion Euros

March 15, 2012

Alstom SA (ALO), the French maker of turbines and trains, expects the market for power equipment in Russia and the Commonwealth of Independent States to reach as much as 13 billion euros ($17 billion) annually.

New builds of coal-fired, gas-fired, nuclear and hydro plants and wind farms may represent 7 gigawatts a year through 2015, about twice the annual average from 2009 to 2011, the company based near Paris said in a presentation today.

“For the power generation market, it’s a 12 billion to 13 billion euro market,” including maintenance and retrofit of the installed base, Denis Cochet, head of sales and marketing at Alstom, said at an analyst meeting today. For new builds alone, the 7 gigawatt market may represent “around 9 to 10 billion euros.”

Alstom has formed a joint venture with Russian nuclear equipment maker Rosatom Corp.’s Atomenergomash and partnerships with makers of hydro, power-grid and rail equipment to tap rising infrastructure needs before the 2014 Winter Olympics and the 2018 World Cup soccer tournament, and as the country boosts exports of raw materials.

Alstom has 400 million euros of revenue in Russia and the Commonwealth of Independent States in the April to December period, and the order intake amounted to 1 billion euros, the company said.

Alstom may benefit from potential nuclear plant orders won by Rosatom inside and outside Russia in coming years, Chief Executive Officer Patrick Kron said today. Alstom may form a venture to make some components of gas turbines in Russia, though having a “full-fledged partner to sell large F-class gas turbines in Russia is today not on the agenda,” he said.

To contact the reporter on this story: Francois de Beaupuy in Paris at fdebeaupuy@bloomberg.net

To contact the editor responsible for this story: Benedikt Kammel at bkammel@bloomberg.net


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