GE Energy Will Invest in Russian Kaluga Region

The agreements were signed last week as part of a presentation on the Kaluga region at the Foreign Ministry in Moscow.

"The investment agreement signed with General Electric envisions the construction of a plant that will repair power facilities and
produce their components on the territory of the Rosva industrial park.

The plant is to be brought on stream in 2010. It will employ about 60 individuals.

"The cost of the project is estimated at about $29 million," a ministry spokesman said.

The agreement with Magna envisions the construction of a plant in the Grabtsevo techno-park that will produce car components for Volkswagen's plant in Kaluga. Construction is to be completed in 2010.

Investment in the project will total $25 million, and the plant will employ about 200 people.

GE Energy, a division of General Electric, said earlier that it intends to invest up to $50 million in the construction of a service
center in the Kaluga region for its Jenbacher gas turbines and gas engines. GE plans to start servicing its equipment in Kaluga in 2011.

The company has similar service centers in the U.S., Western Europe, the Middle East and Singapore.

GE Energy has said it could start producing gas turbines at the plant after 2011.

GE Energy is one of the world's leaders in technology for the production and transmission of electricity. The company increased turnover 33% to $29.3 billion in 2008.

GE Jenbacher produces gas turbines and is based in Austria. GE bought the company in 2003.

Canada's Magna International is the most diversified automotive supplier in the world.

The company designs, develops and manufactures automotive systems, assemblies, modules and components, and engineer and assemble complete vehicles, primarily for sale to original equipment manufacturers of cars and light trucks. The company has production facilities and engineering centers in Europe, Asia as well as North and South America.

Source: Interfax

Author: Ksenia Kochneva