RUSNANO and PJSC Power Machines have reached an agreement on cooperation in the localization of wind turbine equipment production

RUSNANO and PJSC Power Machines have signed a Memorandum of Understanding, according to which both companies are willing to jointly implement the project (hereinafter referred to as the Project) to organize the manufacture of wind-driven power plant components in the territory of Russia. The parties have in principle agreed upon financing the production of components for wind-driven power plants on a parity basis. 

RUSNANO and its potential partners intend to participate in the project for the construction of wind farms, as part of which they will select a foreign supplier of wind turbines from among the world's largest vendors. The joint Project aimed at organizing the manufacture of wind turbine components will be implemented with the involvement of the vendor selected by RUSNANO and Power Machines, and/or its OEM producers. One of the main conditions for choosing a supplier is the existence of a program for localizing the production of equipment in Russia. The degree of localization will increase annually and is expected to reach 65% by 2019.

As previously reported, RUSNANO intends to invest up to 1 billion rubles in localization projects. The company is considering several sites on Russian soil to accommodate the production of wind turbine components as part of the localization plan.

Power Machines is ready to act as a Russian technology partner of the Project. It is planned that TKZ Krasny Kotelshchik, the Taganrog company, a member of Power Machines Group, will organize the manufacture of towers and, optionally, the assembly of nacelles. The participation of Severstal in the implementation of the Project may prove to be its unique competitive advantage. The parties are currently negotiating the conditions for the long-term delivery by Severstal of steel plates for the production of wind towers, weighing up to 180 tons each. In addition, the two companies are considering the possibility of manufacturing generators for wind turbines at one of Power Machines' production sites.