– Atomenergomash is known first of all as a producer of equipment for nuclear power plants. How do you explain such an interest to thermal generation?
– That’s right, our main production for the moment is nuclear power engineering, this production makes 60% of our stock of orders. The rest is not connected with nuclear energy. Our plans for the nearest future is to drive this balance to 50/50.We are hoping to fulfill this task first of all by increasing equipment production for heat power. Inside the group there is a company, a today’s leader in boiler equipment engineering. The situation is the segment is determined a great deal by production schemes of the Soviet times. There were three big productions of TPP boilers on the territory of the late USSR. The Ukrainian region traditionally was served by “Krasny Kotelshik” in Taganrog. 78 units of Ukrainians TPPs are equipped with those boilers, while there is just one of our type, at the Krivorozhskaya TPP. We are aiming to increase this number. We understand the demands of the Ukrainian thermal market of such equipment – we are reasoning from the program of TPP modernization before 2020, approved in our country. According to this document, as many as 4-6 units have to be updated annually. We are having negotiation with all big companies of Ukraine: DTEK, Donbassenergo, Centerenergo.
– How would you compete in Ukraine with other Russian and, moreover, European producers?
– A plant that produces equipment for nuclear power plants can’t do things of a poor quality. The criteria for product evaluation are the same for atomic generation and for others. Besides, there is also such a thing as a competitive price.
– Some Ukrainian companies modernize their enterprises on the account of grants and targeted credits that suggest participation of foreign companies in technical reequipping…
– We are ready to speak to clients, banks, discuss financing. However here we need to specify. A certain program, such as modernization with strictly determined volumes and prospects, would be ideal, not a single equipment supply.
– What share of the Ukrainian market of boilers for thermal units are you aiming to in a medium or long-term perspective?
– We understand that Ukrainian market of TPP equipment is highly competitive. However we are planning to take our 50% there by the end of the modernization program.
– Does your strategy suggest collaboration with our engineers?
– In Ukraine we work with Sumy Frunze Machine-Building Science and Production Association. We also collaborate with other Russian enterprises that are not part of our division but present at the market. But here there is one moment to be aware of… Nobody will trust a side or local producer to issue strategic parts of the equipment, the quality of which is of crucial importance for the contract. Thus, production of heat-absorbing surface or boiler itself is a very important thing which we’ll always be making ourselves, under a good control. However we have a single standard of procurement. Any company can apply to tender and, in case it meets all the demands, become the AEM’s supplier.
– Your major supplier is Energomashspetsstal (EMSS), you got the control over it in 2010. Are you planning to develop this production?
– In November 2012 we started production of new type of furnace and gas-cleaning system at EMSS, finishing a big investment program. We raised the energy performance of production, reducing natural gas consumption at the plant by three. There were about $300 million invested in the plant during the last years. This is enough to work with any client on a good level. Today EMSS together with Ukrainian Turboatom supplies work materials for all AEM orders, the materials are bought by General Electric and Alstom – we have a joint venture with them, and are also bought by wind turbine producers. Taking into consideration all that we are not planning any great investments for EMSS in 2014.
– Atoemergomash announces possibility of joint supply – “boiler and turbine” – together with Kharkov’s plant Turboatom. Are you going to take part in the tender in case of Turboatom privatization in December 2013?
– The agreement on package supply with the Kharkov enterprise was signed last November. We are very interested in cooperation with this plant. Today the production collaboration of EMSS and Turboatom proves effective, speaking about joint supply of work materials. Now privatization of the plant… The rumors that the shares are going to be sold have been circulating for 3 years already. Our position is the following: the first thing to come is the decision of the property privatization coming from the State Property Fund of Ukraine, then we’ll be able to see if we are interested or not.
– Except heat power generation what are other segments of power equipment you are planning to do in Ukraine?
– We are ready to supply equipment, take part in construction and life prolongation of NPPs. Thus, Gydropress, part of our holding company is a designer of the VVER-type reactors, installed on Ukrainian plants. When the decision concerning units 3 and 4 of Khmelnitskyi NPP is made, we are going to take part in the project. We are also interested not only in atomic and thermal power markets, but are looking forward to taking part in gas-oil-chemistry projects.
