Alstom and Soyuz Join Forces in High Voltage Switchgear Manufacturing in Russia

  Alstom and Soyuz Join Forces in High Voltage Switchgear Manufacturing in

Business Wire

LEVALLOIS-PERRET, France -- April 12, 2013

Regulatory News:

Alstom (Paris:ALO) Grid and Soyuz Holding signed a joint venture agreement to
manufacture and commercialise high voltage switchgear as part of on-going
efforts to modernise the Russian electrical grid. The joint venture will be
owned 51% by Alstom Grid and 49% by Soyuz Holding and will be part of Alstom’s
worldwide industrial organisation, benefiting from its industrial know-how and
technological expertise. This agreement follows the memorandum of
understanding signed in 2011.

It is a key milestone for Alstom Grid to address the Russian market, with its
increasingly localised production of equipment for electricity transmission.
The manufacturing deal includes the continued manufacture of 110-220 kV
circuit breakers and enlargement to circuit breakers up to 500 kV. It also
foresees the introduction of a wider range of products, including
disconnectors and gas insulated substations. This equipment will be produced
at Soyuz’s High Voltage Switchgear Factory at Mozhaisk, near Moscow.

This range of products, designed to cope with severe climate conditions, will
contribute to the significant upgrade undertaken by Russia of its electricity
transmission and distribution system, spanning over 2.1 million kilometres
across the country. Russia is one of the largest producers and consumers of
electric power in the world. In 2012, the total volume of electricity
transmitted by the network, including the lines from 0.4 kV to 750 kV, was
over one trillion kW/h. The Russian grid market represents €1.5 billion with
an annual average growth of 10% due to the country’s increasing demand for
electricity capacity and its need to upgrade existing equipment.

Gerhard Seyrling, Vice President Central and Eastern Europe, Russia of Alstom
Grid, says: “Alstom Grid has been committed to the Russian market since many
years and makes technology transfers bringing Alstom’s best-in-class expertise
to modernise Russia’s electricity grid. It also strengthens our cooperation
agreement with FSK, the largest publicly traded electricity transmission
company in the world, signed in 2010. We have a strong presence in Russia with
seven locations spanning the entire country“.

Alstom Grid brings its latest high voltage technology, project management
expertise and manufacturing know-how to provide Russian customers with
reliable and customer-inspired products for a sustainable grid. Soyuz Holding,
a long-time partner of Alstom, will bring its outstanding knowledge of the
Russian market and sound experience as a leader of Engineering, Procurement
and Construction Management market (EPCM).

By inviting a large foreign manufacturer of high voltage equipment, Soyuz
Holding expects to localise the production of the entire range of switchgears
for the networks between 110-500 kV, which will increase the sustainable
operation of the largest transmission and distribution grids of Federal Grid
and Holding MRSK, as well as those of large industrial plants.

“Quick and easy access to a high-quality equipment manufactured in Russia and
its full maintenance are the key advantages for our customers. By doing so, we
will increase the share of localised products in our grid and
generation-related projects,” said Igor Prikhodko, Director of Soyuz Holding.

Production at the Soyuz factory is already underway with 110 kV and 245 kV
circuit breakers, increasing now in quantity, and in 2013 the portfolio will
enlarge to supply up to 500 kV circuit breakers, an entire range of
disconnectors and gas insulated substations.

About Alstom

Alstom is a global leader in the world of power generation, power transmission
and rail infrastructure and sets the benchmark for innovative and
environmentally friendly technologies. Alstom builds the fastest train and the
highest capacity automated metro in the world, provides turnkey integrated
power plant solutions and associated services for a wide variety of energy
sources, including hydro, nuclear, gas, coal and wind, and it offers a wide
range of solutions for power transmission, with a focus on smart grids. The
Group employs 92,600 people in around 100 countries. It had sales of €20
billion and booked close to €22 billion in orders in 2011/12.

Alstom Grid has 130 years of expertise in electrical grids. Whether for
utilities or electro-intensive industries or facilitating the trading of
energy, Alstom Grid brings power to its customers’ projects. Alstom Grid ranks
among the top 3 in electrical transmission sector with an annual sales
turnover of more than €4 billion. It has 19,000 employees and around 90
manufacturing and engineering sites worldwide. At the heart of the development
of Smart Grid, Alstom Grid offers products, services and integrated energy
management solutions across the full energy value chain—from power generation,
through transmission and distribution grids and to the large end user.



SOYUZ Holding is a group of companies, providing a complex of services of
construction of power generation facilities and power transmission and
distribution facilities. Currently the Holding includes about 30 enterprises:
engineering, production and service companies, located on the territory of
Russia, Ukraine, Kazakhstan and the Czech Republic. The design and engineering
potential of the Holding consists of 5 design centers with 900 specialists.
The total number of personnel of the Holding exceeds 3000 employees.
SOYUZ Holding was created in 1991. Its activities are concentrated in two
segments of construction of power engineering facilities: power grid and
generation. The key competences of the Holding include all the types of
project engineering works, power facilities construction management (EPCM),
turnkey construction of power facilities (EPC), production of electrical
equipment (under license of ALSTOM), package delivery of electrical and
heat-power equipment of leading Russian and foreign producers.
In the course of long-term gradual development the company firmly established
itself on the market of construction of power generation facilities and power
transmission and distribution facilities. In the power grid segment more than
150 substations have been built over the last 10 years. The total length of
high-voltage lines of different voltage classes is more than 1.5 thousand
kilometers. The Holding implements projects, significant for the Russian power
industry: construction of the underground substation in the innovation center
“Skolkovo”, construction of electrical grid facilities for servicing the
Olympic Games - 2014 in Sochi. The Company ranks among the five biggest
companies, participating in the investment program of the OJSC “FSK UES”.



Press Contacts:
Ekaterina Dobrogorskaya (Russia), Tel +7 916 982 4517
Emmanuelle Châtelain, Isabelle Tourancheau (Paris), Tel +33 1 41 49 37 38 /39
Alexey Berzon: Tel.: +7 915 037 6364
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