September 27, 2007 -- Mitsubishi Heavy Industries Ltd. said Thursday it has inked a deal with Renova Group of Companies, a major Russian asset management firm, to collaborate in turbine production.
Under the deal, which also involves ZAO Ural Turbine Works, a core Renova Group firm, Mitsubishi Heavy will license its manufacturing technologies for large gas and steam turbines.
Mitsubishi Heavy will also establish a joint venture firm with ZAO and a Russian turbine maintenance service firm to offer after-sales services. It will also consider expanding the scope of cooperation with Renova Group to other fields, such as heat recovery generators.
Russia, enjoying eight straight years of economic growth thanks to rising oil prices, is faced with a shortage of electricity because construction of new power plants has virtually stopped since the collapse of the Soviet Union in 1991, according to Mitsubishi Heavy.
The Japanese firm decided to join with Renova Group in the turbine business, expecting a sharp rise in demand for power generation facilities in Russia, it said.
Renova Group is a stakeholder and strategic investor in a wide range of industries, including oil, mining, chemicals, construction and finance.
Source: Jiji Press English News Service
