France’s Alstom Grid (ALO:FP) and Soyuz Holding of Russia have signed a joint venture (JV) agreement to manufacture and commercialise high-voltage switchgear, following a memorandum of understanding they signed in 2011.
Alstom Grid will hold a majority stake (51 per cent) in the joint venture, while Soyuz Holding has the remaining 49 per cent.
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, 100 km west of Moscow, indicating Alstom’s commitment to the greater production localisation of its transmission equipment.
The current value of the Russian grid market is slated to be EUR1.5bn ($2bn), with an annual average growth of 10 per cent.
According to figures from the International Energy Agency, Russia will require transmission and distribution infrastructure investments totaling $250bn up to 2035.
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