Report: Mitsubishi may localize gas turbine production in Russia

MOSCOW, Oct 10 (PRIME) -- Japan’s Mitsubishi is interested in localization of production of large-capacity gas turbines in Russia, Yevgeny Grabchak, director of the Energy Ministry’s department for operational control and management in the power sector, said in an interview to industrial news website Peretok published on Thursday.

“Several foreign producers express interest in localization of production in Russia, including Siemens, GE, Mitsubishi. Whether it will be a special investment contract or not is a secondary question. First, we need to understand what they want to localize,” he said.

“We need to note that we’ve already had a contract with Siemens, and they failed to comply with it. They should have raised localization to 70% until 2020, they say that their current level is about 60%, while in fact it is below 40%. Localozation of GE turbines is even smaller, it stands at about 20%. The industry ministry denied the request (of Siemens) for a special investment contract–2.0, and we support our colleagues here.”

Russia also has to implement national projects to create gas turbines simultaneously with localization of foreign companies. In particular, the authorities should improve a project of state nanotechnology company Rusnano, power holding Inter RAO, and a subsidiary of state industrial corporation Rostec, he said.

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