04.03.2008 // Interfax

Atomenergoprom is planning to increase its share in Arako to 100%

Atomenergoprom state holding is planning to enlarge its cooperation with Czech companies, including in the field of production of equipment and components for nuclear power plants, says the deputy director general of the company Kirill Komarov.

He says that the Czech Republic is one of the most attractive European countries for Atomenergoprom.

In 2007 one of Atomenergoprom’s companies, Atomenergomash, bought the controlling interest in Arako spol. s.r.o., Czech producer of pipeline fittings.

Now Atomenergomash is planning to increase the share to 100% and to invest big money in the company’s development. Arako will supply its products not only to Russia but also to other countries building nuclear power plants.

If the Czech Republic decided to further develop its nuclear power industry, Russia is ready to offer its services and technologies.

Komarov is sure that Atomenerogprom’s cooperation with Czech companies has very good prospects.

Russia and the Czech Republic have big experience of cooperation. Particularly, Atomstroyexport CJSC and Czech Scoda JS have jointly participated in the tender for the completion of Mohovce NPP project in Slovakia.

Besides, TVEL OJSC has many-year experience of supply of fuel to Czech Dukovany and in 2010 it will start supplying fuel to the other Czech NPP, Temelin.

To remind, the subsidiary of Atomenergomash OJSC, Intelenergomash, has bought 51% stake in Arako Ltd (Opava, the Czech Republic), the leading Eastern European manufacturer of pipeline fittings for nuclear and traditional power plants and oil and gas sector.

Atomenergomash paid 7.5mln EUR for the stake.

Arako spol. s.r.o. is situated in Opava, north-east of the Czech Republic. Since 1970 Arako has produced pipeline fittings for nuclear power plants. In 1995 the company was granted ISO 9001.

Arako company was established in 1992 as a result of the privatization of Minerva plant. In 2002–2006 the company spent 8% of its income on production. Now Arako is one of the best-equipped plants in Eastern Europe. In 2006 the company’s output totaled €7.3mln, with half of the products supplied to nuclear power plants in Russia, Ukraine, the Czech Republic and Hungary. The key consumers of Arako products are Russia, the Czech Republic, Slovakia, Germany, Ukraine and Poland.

The plant has enough capacities to produce fittings for one NPP-2006 unit a year (according to its federal target program, in 2010 Russia will start launching two NPP construction projects a year, in 2015 – four projects a year). Now Arako operates at 40%-60% of its capacity.

75% of Intelenergomash belongs to Atomenergomash (25% to Russian Fuel and Mining Company). This year Intelenergomash made contracts for the supply of fittings and pumps worth 20mln EUR, in 2008 it is planning to make contracts worth 80mln EUR. In the next two years the company is planning to invest 55mln EUR in the production of fittings. Arako is not the company’s last purchase: next year Intelenergomash is planning to consolidate a number of Russian power machinery producers and to enter into joint ventures with world leading companies. In the next five years Intelenergomash is planning to produce no less than 50% of pipeline fittings and pumps for nuclear power plants as well as to manufacture equipment for traditional power industry and oil and gas sector.

Atomenergomash holding produces equipment for nuclear power plants. It comprises EMAlliance-Atom, ZiO-Podolsk, Ziomar, Alstom Atomenergomash, Intelenergomash, Stalenergoproekt and other companies. Atomenergomash is subsidiary of TVEL OJSC, which is part of Atomenergoprom holding.