The agreement, signed yesterday during the Italy-Russia Business Forum in Trieste, commits the companies to jointly develop high voltage cables, joints, terminations and grid monitoring equipment for power transmission systems with voltages up to 500 kV. The two companies also plan to collaborate on post-installation support systems that could prevent grid failures.
Prysmian said it based its decision to expand its Russian presence on the recent revival in grid investment in the nation, and on expected high medium-term market growth. Among other plans, the Federal Grid’s RUB775.5bn ($23.48bn) programme aims to add 66,870 MVA of transformer capacity and 16,985 km of transmission lines in the country by 2017.
Prysmian said it has invested $55m in a cable factory in Rybinsk in the Yaroslavl region, and also owns a factory in St Petersburg. Although it has been involved in building the latter city’s high-voltage grids and in upgrading Moscow’s transmission grid, local production will offer a competitive edge for the future, the company said.
Other global grid-related businesses have also established Russian presences, such as Alstom Grid’s Moscow and regional offices and Hyundai Heavy Industries’ Vladivostok switchgear manufacturing plant.