Power Machines

History

Power Machines company was established in the year 2000. Today it is a joint venture combining technological, industrial and intellectual resources of six world-famous Russian enterprises: Leningradsky Metallichesky zavod (established in 1857), Electrosila (1898), Turbine Blades’ Plant (1964), Kaluga Turbine Works (1946), Reostat Plant (1960) and Energomachexport (1966).

69.92% of shares were owned by Highstat Limited, a company controlled by Alexei Mordashov. 25% of shares were owned by Siemens and 5.08% by minor shareholders.

In December 2011 Highstat acquired Siemens's stake in Power Machines for less than US$280 million (3.6 rubles per share), below the market price (4.9 rubles per share). Power Machines was subsequently delisted from the MICEX-RTS stock exchange. In August 2012 Highstat made a mandatory offer of 4.53 rubles (US$0.139) per share to the remaining minority shareholders, which the Investor Protection Association said was significantly undervalued. Following a complaint filed by the association, the Federal Financial Markets Service fined Highstat 250,000 rubles.

In 2017, the company's CEO Roman Filippov was placed under temporary arrest on suspicions of divulging State secrets. Machine Powers was placed under US sanctions in 2018 for working to “support Russia’s attempted annexation of Crimea”, leading to the loss of a $500-million contract in Vietnam, a failed payment for a contract completed for Ukraine's DTEK, and the sale of its 35% stake in Siemens Gas Turbine Technologies LLC. In 2020, it was awarded the contract to build the 1.4 gigawatt Sirik power plant in Iran. In 2022, Power Machines assembled and tested its first domestically made high-power gas turbine, enabling Russia to replace imported equipment made unavailable since US sanctions.

Structure

• Leningradsky Metallichesky Zavod (1857 establishment),
• Electrosila (1898 establishment),
• Turbine Blades’ Plant (1964 establishment),
• Kaluga Turbine Works (1964 establishment),
• NPO CKTI named after I. I. Polzunov (1927 establishment),
• Energomashexport (1966 establishment),
• Power Machines – Reostat Plant (1960 establishment).

Products

• GTE180 development, GTE170 production, GTE160, GT100, GTE-150, GTE-250 GTE-300 projects, GTE65, unit M94yu2 (Licensed V94.2 Siemens SGT5-2000E in 1994)
• SGTT build licensed SGT5-2000E (GTE160 GTE180 TPE180), SGT5-4000F, SGT-600 (Baltika-25)
• Silmash Gas and Steam Turbines K- and T- for Power Plants (Nuclear Thermal and Hydroelectric)

Management

The Board of Directors consists of eight members:

• From Severstal-group - Alexey Mordashov, Alexey Yegorov, Vladimir Lukin
• From Power Machines - Igor Kostin (General Director), Vadim Chechnev
• From Universal Invest - Igor Voskresensky
• From Siemens - Michael Zuss, Hans-Jurgen Vio

References

References

1. Jack Burke. (20 April 2021). "Power Machines names new general director".
2. [https://career.power-m.ru/en/company/activities-and-events/power-machines-created-an-employee-medical-support-fund/ Power Machines Created an Employee Medical Support Fund]
3. (November 2010). "Heavy Manufacturing of Power Plants". World Nuclear Association.
4. Rozhko, Elena. "Leader of Russian power engineering does not rest on its laurels - Power Machines".
5. Sysoyeva, Marina. (2012-02-12). "Siemens Sells Power Machines Blocking Stake, Kommersant Reports". [[Bloomberg Business]].
6. (2012-08-14). "Mordashov's Highstat makes offer to Power Machines minority shareholders at 4.53 rubles/share (Part 3)". [[Interfax]].
7. Dzyadko, Timofey. (2013-04-05). "Mordashov demanded that minority shareholders of "Power Machines" sell their shares". [[Association of Institutional Investors]].
8. (2017-07-14). "Russia detains CEO of turbine maker Power Machines - report". Business Standard.
9. Woodman, Spencer. (2023-11-14). "As sanctions loomed, accounting giant PwC scrambled to keep powerful Russians a step ahead".
10. (2024-02-12). "Russian billionaire's Power Machines wins lawsuit against PetroVietnam". Reuters.
11. (2021-11-29). "Overview of the latest court practice on the Russian sanctions-related amendments - Is winter coming?". Herbet Smith Freehills.
12. (2020-03-02). "Russia's sanctions-hit Power Machines to sell its stake in JV with Siemens". Reuters.
13. (2020-11-02). "Russia awards contract to Power Machines for work at Iranian power plant".
14. (2022-12-27). "Russia's Power Machines completes first high-power gas turbine to replace imported equipment".
15. (March 2018). "Annual General Meeting of Shareholders of Power Machines OJSC". Power Machines Company.