Alstom, Soyuz Holding form joint venture to service Russian power grid
Alstom Grid will hold a majority stake (51 percent) in the joint venture, while Soyuz Holding has the remaining 49 percent
France's Alstom Grid and Soyuz Holding of Russia have signed a joint venture (JV) agreement to manufacture and commercialize high-voltage switchgear, following a memorandum of understanding they signed in 2011.
Alstom Grid will hold a majority stake (51 percent) in the joint venture, while Soyuz Holding has the remaining 49 percent.
The manufacturing deal includes the continued manufacture of 110-220 kV circuit breakers and an extension of the range up to 500 kV.
It also foresees the introduction of a wider range of products, such as disconnectors and gas-insulated substations.
The equipment will be manufactured at Soyuz's high-voltage switchgear facility, located in Mozhaisk, 62 miles west of Moscow, indicating Alstom's commitment to the greater production localization of its transmission equipment.
The current value of the Russian grid market is slated to be $2 billion with an annual average growth of 10 percent.
According to figures from the International Energy Agency, Russia will require transmission and distribution infrastructure investments totaling $250 billion up to 2035.
This article was originally published on Power Engineering International online. It was republished with permission.