Transcript Document
Electrical Equipment Park in Russian Federation on the basis of Korean technology Project’s conception presentation Moscow Region Investment case concept The industrial land development concept masterminded by National Consulting in the Kolomna district of the Moscow region is aimed at meeting the current and future demand for modern, high quality equipment for the power transmission and distribution industry, required in pursuit of growth, reconstruction and modernisation of power grid; the project also seeks to support the government programme for import substitution to encourage domestic manufacturers and to attract foreign investors This project involves creation of a major industrial park dedicated to production of high voltage electrical equipment, which appears to be the most scarce and predominantly imported including such products as transformers, HV cable fittings and HV cable, complete gas-insulated switchgears and gas-insulated circuit breakers; there is also potential to manufacture low and medium voltage equipment in the future The industrial park is to be located on 125 hectares of land with advanced engineering and transport infrastructure, which features among others the M5 federal road, connection points of MOESK and Mosoblgaz, railway stations, river ports and local aerodromes This project enjoys full administrative support at the federal and regional levels and assumes the participation of JSC UES FGC, JSC IDGC Holding, their subsidiaries, leading Korean electrical equipment manufacturers and the Management Company The volume of the electrical equipment market in Russia is approximately $6.5 billion annually, which primarily relates to FGC and IDGC’s investment programmes IDGC $3,3 bln $6,5 billion FGC $2,2 bln Others $1 bln Consumers of the electrical equipment In the past few years, we have noted a steady increase in demand for electrical equipment. The main consumers of electrical equipment, in addition to electricity, are: Industry growth and power grid expansion drive stable demand for electrical equipment •In accordance with the base case scenario, in the long term electricity consumption will grow by approximately 2.2% per year •Capacities will grow at a pace of 2% annually •Market participants also highlight the stability of electricity demand Modernisation and renovation of outdated equipment is a major driver of demand for electrical equipment •A substantial share of equipment is obsolete and outdated •Depreciation of electrical equipment of key consumers is 50-70% •Substantial resources will be invested in equipment modernisation Power grid expansion and equipment modernisation significantly depend on imports •There is a current trend towards shifting the creation of value from imports to domestic production •In light of the current import substitution programme, it is necessary to localise production in order to occupy the most advantageous positions in the market FGC and IDGC significantly depend on imports: the share of imports in their annual consumption for certain substation types is over 80% Major segments of the electrical equipment market based upon attractiveness criteria Products Participants of the Project The preliminary consent regarding participation in the project have been expressed by several Korean companies. The involvement of partners in the project Kolomensky District. City of Kolomna. Location. Kolomensky District. City of Kolomna. Numbers. Area – 1091 skm (19-th position in the Moscow Region) App. number of settlements – 150 Population – 188 400 (148 000 living in the city of Kolomna) Location – 70km to 110km to the south-east from Moscow ring highway Economy – industrial, agriculture and construction enterprises. Among majoir producers in Kolomensky district is the company BROEN – one of the world leaders in the production of stop and control valves for heating, water, gas, air-conditioning, refrigeration and industry. Important – main engineering communications: gas pipelines Central Asia – Center, Saratov – Moscow, product pipeline Ryazan – Moscow, circled gas pipeline of the Moscow Region, high voltage transmission lines. Transport – well developed road network. Federal Highway M5 on the territory of the district, 15 railway stations and platforms. River transport. 2 local (regional airports). This presentation does not contain any financial information dedicated to investment attractiveness, which will be prepared as a separate document. All the questions concerning participation in the project you can address to phone: +7 (495) 645-47-17 or email: [email protected] Thank you!