Translated material
The limit of patience
Siemens can do without Power Machines
The German concern Siemens, desperate to gain control over Power Machines , may sell its blocking stake in this power engineering company. Yesterday, for the first time, the head of the Russian division of Siemens, Dietrich Möller, told reporters in Sochi about the possibility of such a development of events. “If this regrettable situation with Power Machines continues and the value of our stake declines, then we have the opportunity to sell our stake in Power Machines and build a new, shiny plant,” he said. According to him, the company is now deciding on a site for a new turbine plant. The choice is being made between Russia and India, and it will be influenced not so much by economic as by political risks.At the same time, Mr. Meller noted that the German concern is still interested in increasing its share in the Russian power engineering company. But this, according to him, is hampered by the “political situation” in Russia: the authorities are preventing foreign companies from gaining control over large “strategic” enterprises.
Siemens has already tried to take control of Power Machines, whose main assets - the Elektrosila plant and LMZ - were created with the participation of the German concern even before the 1917 revolution. In 2001, he agreed with Interros, which then owned more than 70% of the company’s shares, to acquire his share. But the Russian government , represented by the FAS, prohibited the sale to a foreign concern of a controlling stake in an enterprise that also carried out defense orders. The permit was issued only for a blocking stake, which is clearly not enough for the German concern to implement the independent policy it strives for. Another blocking stake was sold to RAO UES of Russia, to which Interros transferred its 30.4% stake in Power Machines for management.
But soon the Interros stake will also change hands. The fact is that the co-owners of this company, Vladimir Potanin and Mikhail Prokhorov, announced the division of the business at the beginning of the year. As expected, mining assets and Norilsk Nickel will go to Vladimir Potanin, and energy assets to Mikhail Prokhorov, so we can expect that the latter will also receive a stake in Power Machines. However, the power engineering corporation itself says that this issue is still being discussed.
RAO UES recently decided to sell its stake. Siemens could lay claim to it, but it is unlikely that the Russian authorities, who did not allow him to control the company in 2002, will allow this to happen in 2008. The general director of Power Machines and technical director of RAO Boris Vainzikher recently pointed this out. According to him, the likelihood that Siemens will buy shares owned by RAO is low. Mr. Meller is surprised by this position: “If I were RAO, I would sell it to the one who pays more.”
The press service of the Russian representative office of Siemens said that they do not know whether the management has specific plans to implement the intentions expressed by Mr. Möller.
Power Machines was established in 2000 and is a manufacturer and supplier of integrated solutions in the field of power engineering, including engineering, production, supply, installation, service and modernization of equipment for thermal, nuclear, hydraulic and gas turbine power plants. The structure of the company includes the Leningrad Metal Plant, the Elektrosila Plant, the Turbine Blade Plant, and the NPO TsKTI named after I.I. Polzunov (all these enterprises are located in St. Petersburg), as well as the Kaluga Turbine Plant and the Moscow Energomashexport.