Issue 2(2), april 2014

MEGAWATT
April 2013 | International (special) issue 2(2)
The power for results
ABOUT THE INDUSTRY AND THE COMPANY
COVER STORY
A NEW IMPETUS
TO ACTIVITIES
6
A corporate sales directorate,
bringing together all of the
subdivisions responsible for
product sales, was established
at Power Machines in 2013.
How will this move benefit the
company?
REPRESENTATION
12
Opening
a branch
office in the
Ukrainian market
PARTNERS
20
New
prospects
in the Balkans
PRODUCTION
Secrets
of intense
competition
24
CONTENTS
4–5
16–23
24–27
Company news
Innovations for an Argentinean HPP
Secrets of intense competition
EVENTS
PARTNERS
PRODUCTION
Together with a new general director and
Power Machines, Krasny Kotelshchik is
ready to compete with the world’s leading
boiler power equipment manufacturers
6–11
COVER STORY
28–30
A new impetus to activities
A corporate sales directorate, bringing together all of its subdivisions responsible for
product sales, was established at Power
Machines in 2013. How will this step benefit the company?
HUMAN RESOURCES
New knowledge
for better performance
Power Machines has nearly completed an
order for the Punta Negra Hydro Power
Plant. Some of the equipment has already
been shipped to Argentina; the rest is to be
shipped in the autumn
The greatest educational campaign in the
history of the concern, involving over 700
managers of various levels, has drawn to a
close. What knowledge did trainees gain during the Achieve More Together and Master
Class Programs?
New prospects in the Balkans
12–15
BRANCH
OFFICES
Corporate issue
Power Machines OJSC
Megawatt Digest
Issue 2(2), april 2014
A major contribution
to a neighbor’s power industry
Passed for printing on: __/03/2014
Circulation - 500 copies
Printed by Accent Group
Not for sale
No copying without the
written permission of the editors
A presence in the Ukrainian market is essential for the image of Russia with regard
to the supply of high-tech products and engineering services
Project managers: Maria Aleyeva, Anastasia
Kazanskaya, Sergey Kosarev, Ivan Denisenko
Typesetting by Alexandr Vdovenko
Telephone: +7 (812) 346-7037
Address: 3A, Vatutina Str.,
Saint Petersburg, 195009
In November, Power Machines signed a
supplementary agreement to the Djerdap-1 HPP renovation contract in Kladovo, Serbia
April 2014 | International (special) issue 2(2)
Writers: Ivan Denisenko, Georgy Yegorov, Natalya
Timofeyeva
Proofreading and Editing (English Edition): Tatiana
Kovalenko, Tobin Auber
3
EVENTS
Rated for the First Time
Moody’s, an international rating agency, has
assigned the following corporate credit ratings to Power Machines: Ba1 international
scale rating and Aa1.ru national scale rating.
This is the first time that these ratings
have been assigned to the Company. The
ratings outlook is stable. The Company obtained the ratings in accordance with the corporate programme for stock market operations, which includes obtaining bonded loans.
The ratings confirm that Power Machines
is a reliable borrower with a great deal of influence and a stable position in the power
plant engineering industry, balanced financial policies, sustainable operational growth,
robust risk management practices and a
qualified team of managers.
“We are glad that Moody’s rating agency has given the Company’s financial and
operational performance, its foothold in the
Russian market and its strong prospects in
the international market such a high rating.
We expect the ratings received to enable us
to arrange financing even more efficiently
and expand our investor base when entering the stock market,” points out Igor Kostin,
the Director General of Power Machines.
According to Moody’s agency, the excellent stability of Power Machines’ financial
performance, as well as its strong liquidity
and low debt ratio, which are supported by
continuous improvement of its business system and reasonable financial policies, determined the ratings assigned to the Company.
Memorandum
of partnership
Following the fourth session of the HighLevel Russian-Turkish Cooperation Council on 22 November 2013, a bilateral memorandum of partnership was signed between
Power Machines and ERG Inşaat, Turkey.
The memorandum was signed in the
presence of Russian President Vladimir Putin and Turkish Prime Minister Recep Tayyip
Erdoğan, who was on a working visit to Russia. The document was signed by Igor Kostin, the Director General of Power Machines,
and Muzaffer Özdemir, the Director General
of ERG Inşaat.
The parties agreed on a strategic partnership in manufacturing turbine plant equipment for the Akkuyu NPP Project, particularly on the possibility of manufacturing certain
components and assemblies for steam turbines, generators, and heat exchangers on
the Turkish market under the supervision of
Power Machines’ engineers, in the event of
Power Machines being awarded a project
to manufacture and deliver the main turbine
plant equipment for Akkuyu NPP.
4
According to Igor Kostin, the Director General of Power Machines, the memorandum is
completely in line with the spirit of the Russian-Turkish Intergovernmental Agreement
with respect to engaging local content to implement the Akkuyu NPP Project.
ERG Inşaat carries out a full scope of design and engineering work, and provides integrated construction and mounting of the
equipment on a turn-key basis for large power facilities, airports, bridges, tunnels, and
various types of industrial facilities.
A Turbine for the Capital
Kaluga Turbine Works (KTZ) OJSC, part of
Power Machines, has manufactured and successfully tested a 35 MW steam turbine for
Sofia TPP in Bulgaria. Power Machines and
Risk Engineering AD (Bulgaria) signed a contract to supply power generating equipment in
2012. Under the contractual terms, the power
plant engineering company is to manufacture
and deliver a 35 MW steam turbine complete
with a turbogenerator and auxiliary equipment
to the plant’s fifth power unit, to carry out a supervised installation and train the plant’s operating and maintenance personnel. The PR-358.5/1.0PR-35 turbine manufactured by KTZ
OJSC is a machine with two types of steam
extraction – adjustable and bleeding. This turbine’s design and production is a new project for the enterprise as KTZ hasn’t produced
back pressure machines of such a capacity in
the past. Previously, Power Machines manufactured and successfully tested a set of turbogenerator equipment for the Bulgarian power plant. Replacing the equipment at the fifth
power unit of Sofia TPP will increase its capacity from 25 MW to 35 MW.
A long-awaited start-up
The full-scale commissioning of the fifth power
unit at Razdan TPP (Razdan-5), Armenia, for
which Power Machines manufactured a turbine and generator, has taken place. The construction of the unit began back in 1991 but
was stopped as a result of force majeure conditions. In 2006 the plant came into the ownership of ArmRosGazprom, a Gazprom subsidiary, and the work was resumed. It was
decided that a combined cycle unit would be
built. Specialists from Power Machines’ Service Directorate were actively involved in the
mounting and commissioning of the equipment. A Grand ceremony for the launch of
the power-generating unit was attended by
Alexey Miller, Chairman of Gazprom’s Board
of Directors, and Vardan Arutyunyan, Director
General of ArmRosGazprom. Russian President Vladimir Putin and Armenian President
Serge Sargsyan participated in the event by
video link from the National Drama Theatre
in Gyumry.
Best solution
Power Machines will supply equipment for
the new power unit at Verkhne-Tagilskaya
SDPP. Power Machines and INTER RAO
– Power Generation OJSC have signed a
contract to manufacture and supply power
equipment for the 420 MW combined cycle
power plant being built at Verkhne-Tagilskaya
SDPP. A tender, in which Power Machines
won, having offered the best feasibility proposal, preceded the signing of the contract.
According to the contractual terms, the com-
Megawatt
pany is to manufacture and deliver a 140
MW steam turbine, complete with a generator, and a 306 MW gas turbine , also complete with a generator. The steam equipment
for the CCPP will be manufactured by Power Machines and the gas equipment by Siemens Gas Turbine Technologies, a joint enterprise of Power Machines and Siemens
AG – the manufacturer of gas turbines and
maintenance provider. The equipment is to
be supplied in 2014.
Export Supply
To global standards
A high-voltage transformer manufacturing
plant – the joint venture of Power Machines
and Toshiba Corporation, Japan – has been
put into pilot operation. Power Machines –
Toshiba High-Voltage Transformers LLC was
put into pilot operation in the industrial area of
Metallostroy (Kolpinsky District, Saint Petersburg). The construction project was carried
out in record-breaking time – just two years.
Total investment in the construction amounted
to approximately 5.5 bln rubles. Fitted with the
most advanced equipment, the plant features
advanced technology meeting international
standards. The plant’s output encompasses
a range of power transformers and autotransformers rated 110 to 750 kV of a capacity exceeding 25 MVA, including three-phase transformers, as well as shunt reactors rated 500 to
740 kV. A fully automated test center permits
the performance of a full set of type and acceptance tests of transformers rated up to 750
kV and higher. The plant’s annual design capacity exceeds 10,000 MVA. There will be approximately 350 employees. Specialists from
Toshiba have control in the spheres of quality assurance and compliance to the design
and manufacturing technology. They also participate in tackling technical and manufacturing issues.
Contract won!
Power Machines has become the general
contractor for the second stage of Blagoveshchensk TPP (RusHydro). The general construction contract for the second stage of the
TPP was awarded, on a tender basis, to Power Machines. The selection of the general contractor means that the second stage of the
largest heat power producer in Amur Region
is now entering an active construction phase.
Phase II of Blagoveshchensk TPP is one of
four projects being implemented under RusHydro’s investment program to build new power
facilities in the Far East jointly with RAO Energy System of the East, following the Decree of
the President of Russia. When Phase II of the
construction is completed, the TPP’s installed
electric power will increase by 120 MW to 400
MW, and its thermal capacity will increase by
188 Gcal/h to 1005 Gcal/h. The construction is
scheduled for completion in 2015.
Kaluga Turbine Works (KTZ) OJSC has
agreed and signed two new export contracts.
The first contract is for the supply of
four expansion turbines (turboexpanders) to Capital Investment Fund Ltd (Kazakhstan). They are to be mounted at the
Aktobe, Atyrau and Almaty gas distribution substations in Kazakhstan. Under the
terms of the contract, KTZ is to manufacture and deliver three turboexpanders,
each with a capacity of 2.5 MW, and one
with a capacity of 4 MW. The manufacturing period for the equipment is Q4 2014 Q1 2015.
The second contract was signed with
Ekobana CJSC (Lithuania) and is for the
supply of a steam turbine for the slate
plant in Kohtla Jarve (Estonia). Under
the contract, KTZ is to supply a 27 MW
K-27-2.9 steam turbine. The company is
also going to develop documentation for
the turbine internal pipes and perform
the steam turbine mounting and supervised adjustment. Delivery is scheduled
for September 2014.
The new steam turbine plant is going to be
equipped with a state-of-the-art microprocessor
automated control system and electrified actuators in compliance with EU requirements.
a Prestigious event
Power Machines attended Power-Gen Asia
2013, a prestigious international energy
conference and exhibition. One of the Asian
region’s largest events of the highest level,
it was held in Bangkok, Thailand.
Power-Gen Asia’s key focuses are traditionally on equipment for steam, hydro, and
gas turbine power plants (turbines, generators), and heat exchange and auxiliary
equipment; it addresses issues of heat supply, industrial Energetics, and so on.
Power Machines were represented by an
impressive multidisciplinary delegation. The
company’s stand attracted the attention of
forum participants and guests, who asked a
April 2014 | International (special) issue 2(2)
large number of questions regarding the activities of Power Machines.
5
COVER STORY Unified Corporate Sales Directorate
6
Megawatt
A NEW IMPETUS
TO ACTIVITies
A corporate sales directorate, bringing together all of
its subdivisions responsible for product sales, was established at Power Machines in 2013. How will this
move benefit the company?
Vladimir STEPANCHENKO, previously in
charge of a sales subdivision operating domestically and in the CIS countries, has taken the position of Power Machines’ Sales
Directorate.
– Why did all sales activities have to
be integrated?
– First of all, I should say that the ongoing structural transformations at Power Machines are aimed at improving the efficiency
of sales business processes. Consolidating
sales in a single directorate will permit our
work to be organized in a different way, and
will give our business a new impetus.
The world around us is changing – growing competition and
the ongoing recession
The structural
impose more stringent
requirements
and
transformations
make us seek new
approaches. To gain
are aimed at
ground rather than
improving the
simply take a foothold
in the market, one has
efficiency of
to readjust at every
turn, and restructuring
sales business
is just another phase
processes
in a company’s life.
I am well aware of
the complexity and the
real work involved in formulating and implementing a new sales strategy. However,
we’ve got a great team that is experienced
and cohesive. We have survived more than
one crisis together and I’m sure we will be
able to find proper solutions in the current
situation. There are clear and precise tasks
set before us and we will tackle them.
venture, which will allow us to considerably reduce the burden associated with import duties.
The Indian market is certainly one
the most interesting and promising markets as the Indians have a
strong need to build new
Restructuring
and modernize existing
power plants. Power Mais just another phase
chines is well-known there;
our equipment has been
in a company’s life
mounted and functions at
many plants there.
Latin America is another region of importance for us. We are considering various
options of localizing our production in Brazil and are, together with Inter RAO, participating in tenders to supply the main pow- El Cajon HPP, Mexico
is fitted with equipment
er equipment for hydro power plants under supplied by Power
Machines
construction and development.
– I would like to talk about the sales
strategy at Power Machines. Today many
large companies are actively localizing
their production, so obtaining recognition as a local manufacturer and the preferences that go along with this ...
– Yes, there is such a trend in the world,
and we are also forging ahead with this
trend in mind. Work is in progress in India,
in particular, where we want to set up a joint
April 2014 | International (special) issue 2(2)
7
COVER STORY Unified Corporate Sales Directorate
Yet another turbine being assembled on the bench in LMZ’s steam turbine shop
The end of a journey
A large consignment of Power Machines’ equipment has been delivered
successfully to the site of the Punta Negra HPP, which is being constructed in Argentina.
The delivery includes two hydro generators and a turbine with a pre-turbine gate
valve for the HPP’s first hydro power unit.
The equipment sent by sea from St. Petersburg in August 2013 was delivered to
the port of Buenos Aires, and was then
8
taken on to the site by motor transport.
The second hydro turbine was sent to the
plant last October.
Power Machines’ scope of supply for the
Argentinean plant comprises two Francistype hydro turbines with a capacity of 31.62
MW each, including 2.6 m pre-turbine gate
valves and governing equipment, as well
as two generators complete with excitation
systems. The corresponding contract was
agreed with UTE of Argentina in 2011.
– What is your assessment of the
performance of Power Machines’
branch offices?
– Branch offices are set up where there
is certain work going on. Only experienced
technical specialists from Power Machines, who possess the necessary competencies and have proven themselves in
a number of projects, are assigned as their
leaders. For example, a branch office may
soon be opened in Vietnam. Power Machines’ office in Turkey is working vigorously; TPP renovation and HPP construction projects are being negotiated and our
partners are confident about that. We are
Megawatt
putting a great deal of emphasis on the promising Latin American market, where Power Machines has already implemented a
number of projects. We have set up an office in Argentina where
the Punta Negra HPP, for which our company has manufactured
equipment, is under construction.
As to our neighborings, we have been actively operating in the Ukraine since 2007;
We are
our branch office has been opened there.
considering
We manufacture and supply equipment to a
number of Ukrainian plants.
options
A subsidiary of our company - Power
Machines
– Service LLC, which in fact is our
to localize the
branch office for the performance of current
manufacturing
contractual obligations, was set up in Uzbekistan in the autumn of 2013.
in Brazil
I would like to stress that our company’s activities on the overseas market are
of great importance not only in terms of
strengthening international collaboration but also from the perspective of promoting Russia’s prestige. We’re exporting ad-
Steam turbine rotor
shaft being machined in
LMZ’s rotor shop
For the HPP compensating reservoir
Nizhne-Bureyskaya HPP OJSC (a subsidiary of RusHydro OJSC) and Power Machines have signed a contract to supply four
hydro power units with a capacity of 80 MW
each to Nizhne-Bureyskaya HPP.
The signing of the contract was preceded
by a tender, which was won by Power Machines because the company presented the
best technical and fiscal solution. Pursuant to
the contract, the company is going to design,
manufacture and supply four sets of hydro
power units, each including a Kaplan turbine
complete with an automatic control system, a
hydro generator complete with an excitation
system, and auxiliary hydro power unit equipment. Moreover, Power Machines is to mount
the hydropower units at the plant.
Commissioning of the hydropower units
at Nizhne-Bureyskaya HPP is scheduled for
2015–2016. The hydro turbines will be of environmentally benign design: the impeller cavity where a blade turning mechanism is located will not be filled with oil, which eliminates the
risk of its spilling into water.
April 2014 | International (special) issue 2(2)
Nizhne-Bureyskaya HPP is the compensating reservoir of Bureyskaya HPP and is
the second plant within the Bureya System.
The plant’s design capacity is 320 MW. Apart
from generating electric power, Nizhne-Bureyskaya HPP has the important function of
equalizing irregular daily discharges from Bureyskaya HPP and preventing the flooding of
residential areas. Construction of Nizhne-Bureyskaya HPP is one of the top-priority projects under RusHydro’s investment program
and has been underway since 2010.
9
COVER STORY Unified Corporate Sales Directorate
vanced products and engineering services, not raw materials.
– What products constitute the major portion of Power Machines’ sales ?
– Today our production facilities are fully engaged with all kinds of orders, many of which reBranch offices are
late to hydropower engineering. Most of our proestablished where
jects focus on the enhancement of power plant
equipment. The crucial point here is that the life
there are specific
cycle of the products previously produced by
Power Machines’ LMZ and Electrosila was unworks being
derestimated. As luck would have it, our equipcarried out
ment keeps running far beyond the warranty period, confirming its reliability and efficiency through
testing and monitoring. Seeing this, power generating plants have realized that it would be more cost-efficient
for them to retrofit the existing equipment than to buy new equip-
Further collaboration
Power Machines and the Turkish company DSI (Water Reservoir and HPP Department of the General State Agency for
Water Resources under the Ministry of
Forestry and Hydraulic Works) have entered into a contract to provide the equipment to Kıgı HPP being built in Elâzığ, Turkey.
A tender, upon the results of which
Power Machines’ feasibility proposal was
recognized as the best, preceded signing of the contract . According to the contractual obligations, Power Machines are
10
to produce and deliver on a turn-key basis HPP’s electromechanical equipment, including three 46.6 MW hydro turbines each
with pre-turbine gate valves, three generators of the same capacity, all electromechanical equipment for the turbine hall and
a switchgear. Commissioning of all three
hydropower units in 2016 will complete the
project .
Power Machines’ participation in the
construction of Kıgı HPP is a sign of the
company’s further success in Turkey: in
2008 Power Machines implemented a pro-
ject to provide the equipment for Torul HPP and supervise its mounting. The
scope of supply comprised two 52.8
MW hydro power units, each equipped
with Francis-type hydro turbines with
pre-turbine gate valves, two hydro generators and excitation systems. Back in
the 1980s, LMZ and Electrosila supplied
equipment for Orhaneli TPP and Iskenderun TPP. In the 1970s, Krasny Kotelshchik, the Taganrog Boiler-making plant,
also supplied six boilers for Iskenderun
TPP.
Megawatt
ment; hence the great number of modernization orders.
With regard to thermal power engineering, we are putting the emphasis on combined-cycle plants based on 2000Е and
4000F gas turbines that are manufactured
by a joint venture of Power Machines and
Siemens. What is more, as high-pressure,
high-temperature steam technology is increasingly sought-after around the world,
that has been the focus for our own advanced development – the innovative
K-660 steam turbine featuring ultra-supercritical steam parameters – created by engineers from LMZ’s Turbine Special Design
Bureau.
– Which aspects of Power Machines’
activities would you like to enhance as the
sales director?
– There is always room for improvement of course. The quality of products
and the installation and commissioning
timeframes can and should be amended.
However, it’s worth mentioning, that we at
Power Machines
have
already
done much to
Transitions
monitor schedule
are not always
and
workmanship, introduced
seamless, but
SAP, and now all
of the company’s
that is the
key subdivisions
nature of
are
integrated
into the process.
change
In general, I think
we can say that
sales are the key
point for customers so we are in the vanguard and are constantly settling various
complicated issues.
– How would you evaluate the company’s potential on the market, how secure
are the competitive positions of Power Machines?
– Power Machines is rightly seen as
one of the world’s leading power engineering companies and it has all the
means to strengthen and promote its
positions at its fingertips. The company
is developing vigorously and is securely integrated into global processes. We
are recognized, appreciated and somewhat feared. We compete successfully
with major manufacturers, and we deal
just as well with the problems that we encounter as our competitors do. Therefore,
when making a decision regarding internal structural changes, we have to learn
from comparable experiences of other
blue chip companies. Of course, such
transitions are not always seamless, but
that is the nature of change. You have to
get used to everything anew.
Generator stator for
Jyväskylä TPP being
tested at Electrosila
Interview by Ivan DENISENKO
April 2014 | International (special) issue 2(2)
Vladimir
Illarionovich
Stepanchenko joined
the mounting department of the steam turbine design bureau at
Leningradsky Metallichesky Zavod (LMZ)
in 1971 as soon as he
graduated from the Polytechnical Institute in
Bryansk. From 1971 to
1991 he was engaged
in designer supervision where steam turbine plants, designed
and manufactured at
LMZ, were mounted, adjusted and brought to the rated performance. In 1991 – 1997 Vladimir Stepanchenko worked at LMZ
as a deputy chief designer of steam turbines, supervising installation, commissioning, start-up and adjustment, and follow-up
work at plants both in Russia and abroad. In 1994 – 1997, he
was responsible for overseeing the projects at Toppila TPP and
Tahkoluoto TPP, Finland. From 1997 to 2001 he was the head
of the service department for the LMZ products developed with
his active participation.
Vladimir Stepanchenko has been with Power Machines since
2001. He worked as a deputy service director until 2006 and he
became a sales director (for the domestic market and the CIS) in
2008. Dozens of contracts were signed and carried out under his
immediate guidance. Since 2013, he has been Power Machines’
Sales Director. He has been awarded the Rosenergoatom Silver
Medal for Merit in Improving the Safety of Nuclear Power Plants.
11
REPRESENTATIVES Ukraine
A Major contribution to a
neighbour’s power industry
The presence of Power Machines in the Ukrainian market is essential not only from the point of strengthening relations
between our countries, as the two states’ prime ministers emphasized repeatedly, but also for Russia’s image. We supply
high-tech finished products and engineering services, rather than merely exporting natural resources.
12
Megawatt
Power Machines began to strengthen its
market presence in Ukraine in 2007, when
a major contract to supply equipment for
Kurakhovskaya TPP’s power unit 5 was
signed. In October of 2012, a few years
later, a decision to establish a Ukrainian
branch office for the power plant engineering company was confirmed .
“The decision to establish a branch office was made in order to represent Power Machines and protect its interests when
fulfilling TPP turbine and boiler renovation contracts in Ukraine,” says Sergey
Karabutov, the director of the branch office. “First, the necessary range of staffing and organizational measures was taken for the new subdivision, and the branch
office began to perform the functions assigned to it from January of 2013.”
Power Machines offers integrated technical solutions for the renovation and overhaul of power units and successfully implements turn-key projects. This strategy
is also employed in the Ukraine, allowing
power plant engineers to meet customer needs in the best possible way and at
the same time operate within the Ukrainian legislative environment.
The Power Machines branch office faces a multitude of challenges in both promoting the company’s products in the mar-
ketplace and in implementing the projects. As Sergey Karabutov
puts it, in the short run the company intends to fulfill its contractual obligations to renovate a number of Ukrainian thermal power plants. “Power Machines’ engineers are rendering services in
mounting supervision and training the plant’s personnel at our
sites in St. Petersburg and Taganrog. At the same time, components for various power plants are being manufactured, and
new projects are being negotiated,” the head of the office states.
The mounting work at power unit 13 of Luganskaya TPP has
entered the home straight. Here, a new 217 MW turbine with
design properties including a high-pressure cylinder with reactive blading is being
mounted within the framework of the renoIn 2007, the first major
vation project (adding 17 MW to the previcontract to supply
ous capacity). This can be regarded as a
pilot project; the solutions proven on 300
the equipment
MW turbines have never been used on 200
MW models. In addition, intermediate- and
was signed with
low-pressure cylinders of the same unit
a Ukrainian client
have been modernized too. According to
the contract, the renovated unit is to be prepared for commissioning this autumn, and
all works are on schedule. In late 2012, power unit 10 was successfully tested at Luganskaya Plant through Power Machines’
involvement, thereby completing the K-200-130 turbine IPC renovation project. Today, the equipment for the renovation of power unit 11 at Luganskaya TPP is being produced at Krasny Ko- An additional 17
MW was added to the
telshchik, the boiler plant in Taganrog.
It should be remembered that Luganskaya TPP was built in previous capacity of the
new turbine in power
1956 and the operating time of the equipment is over 250,000 unit 13 at Luganskaya
hours, so renovation is imperative . In 2012 Power Machines
TPP
April 2014 | International (special) issue 2(2)
13
REPRESENTATIVES Ukraine
won the tender held by Vostokenergo (DTEK) for the renovation
of a turbine in power unit 15 at Luganskaya TPP. The power engineering company had offered the best feasibility proposal and
Luganskaya unit 11
became the general contractor for this project. It also supplied
equipment for the plant’s renovation with an increase in its capacity from 200 to 224.1 MW. The participation of Power Machines
in the renewal of another power unit at Luganskaya TPP is a sign
of the Russian company’s continued success of the project to renew the fleet of Ukrainian thermal power plants’ steam turbines.
“Mounting works on power unit 5 at Burshtynskaya TPP are drawing to a close,” Sergey Karabutov continues. “Hopefully, the colAn additional 17 MW
laboration with this plant will continue. Power
was added to the
Machines is regarded as a potential general contractor for the renovation of power unit
previous capacity
10. In the event of our winning the tender,
the production of a full package of equipof the new turbine
ment is possible — a boiler, a turbine, auxin power unit 13 at
iliary equipment, a generator, and a thyristor excitation system. The situation regarding
Luganskaya TPP
the project will be clarified in the foreseeable
future, as there are plans to shut down the
unit for renovation in March of 2014.
Some of the major components installed at Burshtynskaya
TPP include a control stage of a secondary reheater in four pits,
cold and hot platens in four pits with micro headers, and secondary reheater input sections with inlet and outlet headers in the
third and fourth pits. This equipment, manufactured with breakthrough technologies, will enhance the technical and economic
performance of the power unit as well as the operational performance of the entire plant.
The renovation of power unit 12 is also under way at Starobeshevskaya TPP in Donetsk Oblast; six 200MW turbines from Pow-
14
er Machines are already functioning at the
plant. Sergey Karabutov notes that this
project is of crucial importance for the region because of its environmental nature
—the volumes of polluting emissions are
going to be substantially reduced. The deliveries of ТП-100 coal-fired boiler components, manufactured by EMAlliance, are
also about to be made. With a total boiler weight of over 750 tons, this is literally a
weighty contribution to the renewal of the
plant. It should be noted that the contract
to supply equipment for Starobeshevskaya
TPP was signed between EMAlliance and
Donbassenergo in November of 2011. As
set forth in the document, EMAlliance is to
supply equipment for the retrofit of the ТП100 boiler unit 12. The project is unique in
that it uses a method for the manufacturing internal burner parts with a wear-resistant weld deposit. This method was used for
the first time in 2010 when the equipment
for the renewal of the ТП-100 boiler of unit
11 was manufactured . The products developed by applying the latest technical solutions will increase the technical and economic performance of the power unit and
expand the range of continuous anthracite
burning without “lighting”, which is to say
using costly liquid fuel or natural gas.
“The negotiations regarding further collaboration are being conducted with the
management of Starobeshevskaya TPP,”
Megawatt
Sergey Karabutov says. “The equipment of
the plant’s seventh and eighth power units
requires renovation. In fact, they plan to
build unit 7 anew rather than reconstruct
it. Sergey Karabutov believes the participation of Power Machines in the renewal
of the Ukrainian power sector to be a natural development. There is a wide scope of
work resulting from the high depreciation
rate of the generating equipment and the
need for its replacement which has been
evident for a long time. In addition, many
Ukrainian plants were originally fitted with
equipment manufactured at LMZ, Electrosila, and Krasny Kotelshchik.
The Uglegorskaya
TPP is a potential
project for the future
“Power Machines has successfully implemented a number of
renovation projects for Ukrainian
plants in recent years and, what’s
more, it has applied novel engineering solutions,” summarizes the
head of the branch office. “Hopefully, partnership between Russia and Ukraine is going to develop and strengthen, in part through
the joint engagement in the field of
power engineering.”
750
Burshtynskaya TPP
tons is the weight
of the ТП-100 coalfired boiler for
Starobeshevskaya
TPP
Ivan DENISENKO
The plant suffered a major fire in March 2013, which lasted for 14 hours and resulted in
the complete burning-out of one of the two power houses equipped with 300MW turbines
from Turboatom, Kharkov.
The plant renovation project has recently been announced by the Ukrainian Cabinet
of Ministers as a top-priority project and one of social significance. This is no surprise,
as Uglegorskaya TPP is one of the main generating facilities in Donetsk Region. Thus,
the cost of electricity was raised in the country in April (it is planned to steer money into
the recovery of the burnt-out TPP) and, in June, the government started to allocate funds
from the state budget for the plant’s repair and the construction of a new boiler house in
the town.
Today, the facility is undergoing a survey of defects aimed at establishing whether the
damaged equipment can at least be partially recovered. Based on the survey’s results,
the scope of works will be determined and a tender will be announced. Power Machines
is likely to be considered as a supplier of boiler equipment for this project.
April 2014 | International (special) issue 2(2)
15
Partners Punta Negra HPP
Innovations for an Argentine
Hydroelectric Power Plant
Power Machines has completed an order from Latin America to manufacture
equipment for the Punta Negra hydroelectric power plant in Argentina
Power Machines and the general contractor for the turn-key project
of a hydroelectric power plant’s construction – the Argentine UTE
Consortium (Techint and Panedile) – signed a contract to supply
hydropower equipment to Punta Negra
HPP in 2011. The Russian company is
Punta Negra
to supply the Argentinean power engineers with two 32 MW hydroturbines,
hydroelectric power
pre-turbine gate valves and automatic
control systems, as well as two generplant – Power
ators complete with excitation systems
Machines’ second
and a current lead.
According to Mikhail Kashyrin, Promajor contract
ject Manager at the Department for the
Implementation of Hydropower Engiin Argentina
neering Projects in the External Market
of the Power Machines Sales Directorate, the equipment is ready. First the turbines will be installed at
the plant, and then the generators. Throughout 2014, specialists
16
from Power Machines are going to supervise the mounting, and then commissioning
operations are to be commenced. Trial startups of the units are scheduled for the end of
Q1 2015, and the power plant is expected
to be put into commercial operation in Q2
2015. The equipment, supplied by a local
subcontractor, IME, is already being mounted at Punta Negra HPP: embedded parts
of turbines, stators and spiral cases. Power
Machines worked with IME when supplying
a complete set of equipment for Los Caracoles HPP – the first Argentine hydroelectric power plant, which was equipped by a
Russian power engineering company in the
XXI century. The plant was put into operation in 2010. Power Machines designed and
manufactured two hydropower units for the
plant, each with a capacity of 60.78 MW and
complete with hydromechanical and auxiliary equipment. Punta Negra is Power Machines’ second large contract in this South
Megawatt
American country. Both power plants are
located in San Juan Province on the river
of the same name (Punta Negra is downstream). As the Argentine power engineers
note, the equipment at Los Caracoles HPP
has proven successful.
The use of an intermediate shaft was a
distinctive feature of the equipment for Punta Negra HPP. It was brought about by the
client’s proposed plan for turbine dismantling that does not require the generator disassembly. These are high-speed generators
(300 revolutions per minute). Upon the customer’s request, they were manufactured
with an umbrella-type design and complete
with excitation systems. All of the generators’ components and parts are coated with
special paint, meeting the customer’s requirements and ensuring the safety of the
equipment during its transportation by sea
and its further operation.
The wicket gate produced for Punta Negra also has an interesting design feature:
it includes an integral safety device. Either
a shear pin or friction mechanism is generally used as a safety device in wicket gate
vanes during the production process at
Power Machines. The application of a uni-
fied integral device required a special power test program to be de- Shaft and impeller
veloped. Thus, after a test assembly of the wicket gate, tests to de- of the hydroturbine
for Punta Negra
termine the friction coefficient and tightening torque of the friction HPP in LMZ
mechanism were performed, together with the shearing force check workshops
on sample vanes.
The Argentine party kept a close eye on
the equipment’s production process, including the difficult operation executed at LMZ.
32 MW – the capacity
There, the main and intermediate shafts of
of each of the two
the hydroturbine and rotor shaft of the generator were aligned on a George turning lathe.
hydroturbines to
Since checking the shaft alignment in a vertical position is impossible in workshop condibe supplied by the
tions, the assembly was carried out horizonCompany to Argentine
tally. The complexity of the operation was in
the fact that the parts lay on hydrostatic folpower engineers
low-rests and came out in a different way
each time. The production plant’s specialists
had to align the parts when they emerged to
a minimum tolerance. The engineers of LMZ Technical Department
developed a special method and the generator rotor shaft also underwent additional mechanical treatment for this purpose.
Another peculiarity of the Argentine hydropower equipment control was the dynamic balancing of the radial-axial impeller. Usually
only static balancing is performed at the production plant, but in this
case, the client demanded a more thorough inspection.
Complete sets of finished poles were presented to the Argentine inspectors at Electrosila. There, in the presence of the
April 2014 | International (special) issue 2(2)
17
Partners Punta Negra HPP
customer’s representatives the geometry of the stator housing with the core inside was checked there as well,. The core
was inspected for losses and the absence
of hot spots using an induction method.
The
Argentineans
also accepted the
stator winding studs.
A wicket gate with an
The customer signed
all of the protocols
integral safety device
on these inspections
for the power plant is
without any reservations. The guests
being manufactured
noted that all the departments were well
prepared for their visits, as well as the high level of management
and the quality of the documents compiled.
Construction works at
Punta Negra HPP
18
The Province of San Juan is situated in the west of Argentina,
in the Andes, at an altitude of about one kilometre above sea level.
San Juan, the main city of the province, was founded by the conquistadors in 1562 and named in honour of John the Baptist. “The
climate there is similar to Kazakhstan,” says Mikhail Kashyrin. “It’s
very dry at the HPP site and it hardly ever rains. The reservoir is
filled thanks to the snow that falls in the mountains and starts to
melt in the spring, that is, sometime in August.” The main function
of the San Juan dams is to collect water to irrigate the territory because the provincial economy is based on wine-making and gardening. A desert plateau with bushy patches stretches to the areas
where there is no irrigation.
“Generating power is of secondary importance, although
there is a power shortage in the province,” notes the Project
Manager. “At Los Caracoles HPP there are periods when the hydropower units don’t function because it is impossible to obtain
the required amount of water, as water is drained through the
bottom discharge in line with the environmental requirements to
Megawatt
maintain the water level in the river and to
provide irrigation.”
According to Mikhail Kashyrin, the Argentine engineers with whom Russian specialists have worked are relatively skilled
and competent, yet there is a sense that
they lack specific experience in working
with hydroelectric power plant equipment.
“With us, we’ve discussed it and that’s that,
you go ahead and you do it, but they hold
as many as three meetings. They check
and measure everything. ‘Measure thrice
and cut once’ is the proverb they stick to
closely in their work,” notes Alexander Maslennikov, Head of the American Regional Sales Department of the Power Machines Sales Directorate. “Dealing with the
staff that specializes in mounting is not so
easy because such facilities have not been
built here for a long time. Generally speak-
ing, these construction sites provide many people with jobs. The
Argentineans continue to build hydroelectric power plants partly because they need to move the people who worked at Los Caracoles HPP
someplace. It supports the economy of
The main function
the province. Los Caracoles is the only
power plant that has been built in Argenof the San Juan dams
tina over the last, I think, 10 years.”
The builders work in shifts of 10 to
is to collect water for
11 hours, although the entire province
irrigation
observes a siesta from noon until three
o’clock. Even shops are closed at this
time. Only gas stations are open. “The
people there are of modest means and
friendly. The wages are substantially lower than in Russia,” says
Mikhail Kashyrin. “However, engineers and managers who reach
a certain level of qualification make a very good living, even by our
Cross-bearing of the
standards,” he adds.
April 2014 | International (special) issue 2(2)
Georgy EGOROV
Argentine generator
being treated at the
Electrosila facility
19
Partners Djerdap-1 HPP
NEW PROSPECTS
IN THE BALKANS
In November of 2013, Power Machines signed a
supplementary agreement to the Djerdap-1 HPP renovation
contract in Kladovo, Serbia. After the renovation, the
technological lifespan of the hydro power plant will be
extended by another 40 years and its capacity will increase
by 66 MW. According to the agreement, Power Machines is
to supply the power equipment by April 30, 2018.
Fifty years of reliable operation
The construction of Djerdap-1 Hydro Power Plant was initiated in Kladovo almost
50 years ago, in 1964, and was commissioned step by step
between 1972 and
Since its launch, the
1974. Another HPP,
Portile de Fier (Iron
HPP has generated
Gate), was built at the
same dam on the Danan average of 6 bln
ube. The former plant
kilowatt-hours per year
is Serbian, while the
20
latter belongs to Romania. It is no wonder that the Soviet Union, the senior partner of these countries in the socialist bloc,
made a decisive contribution to the construction of the plants. The USSR took on
the technical aspects of the project; turbines and generators were manufactured
by Leningradsky Metallichesky Zavod and
Electrosila.
Since its launch, the HPP has generated
240 bln kilowatt-hours of electricity, making
ofr an average of 6 bln per year. According to Serbia Electric Utility Power Company (EPS), 19 bln kilowatt-hours were generated in the country between January and
June of 2013, 4 bln of which were generated by Djerdap-1. The plant on the Danube
is therefore still the largest HPP in SouthEastern Europe. This is a case of relatively
cheap electricity being generated without
damaging the environment.
The plant’s many years of seamless
operation contributed largely to the Serbi-
Megawatt
ans’ choice of partners that could be entrusted with the renovation. They chose
the manufacturers of the already existing equipment. The contract to manufacture six units for Djerdap-1 HPP, increasing their capacity from 174 to 201 MW,
was signed with Power Machines as early
as 2003. However, the project financing
was suspended. It should have been implemented within the repayment of the former USSR’s debt to the former Yugoslavia, but encountered legal difficulties for
a prolonged period. In 2007, Russia and
Serbia entered into an intergovernmental
financing agreement and the first consignment of equipment was shipped in 2009.
Power Machines never stopped working on the project during this time, and
by the time the supplementary agreement
was signed in 2009, the 201 MW turbine
and hydro generator for the first of the hydro power units under reconstruction had
already been manufactured. Moreover, a
mounting base had been constructed and equipped at the site
and overhead cranes were renewed in the turbine room. To sum
up, despite legal issues, the technological process didn’t stall,
which enabled the renewal to be smoothly resumed.
Generator stator
winding bars for
Djerdap-1 HPP
More weight to the contract
The current change to the conditions of the contract is due to
the fact that the Russian-Serbian Intergovernmental Agreement
on the settlement of Clearing Debt, under which the renovation had been financed, expired in April of 2013. A
New generating
document signed in November of 2013
made the timeframes more exact, decapacities in the Balkans
fined sources of financing, and alhaven’t been introduced
lowed the HPP units to be renovated
under new commercial terms and confor almost 25 years
ditions. The agreement was signed by
Alexandar Obradović, Acting Director
of the state-owned Serbia Electric Utility Power Company (EPS), Goran Knežević, Director of Djerdap
HPP Company, and Vladimir Stepanchenko, the Sales Director
at Power Machines. Power Machines are to supply equipment
and to provide services in the amount of 155.9 mln dollars,
April 2014 | International (special) issue 2(2)
21
Partners Djerdap-1 HPP
Impellers for Serbian
turbines are assembled
at LMZ
22
100.5 mln dollars of which are to be paid at the expense of Russia’s clearing debt to Serbia; and the remainder is going to be
paid by the Serbian party from its own sources.
In comparison with the previous plans, the contract price has
increased considerably for Power Machines. This is the result
of an additional consignment of equipment to be supplied under the agreement: three impeller bodies, three hydro turbine
covers and shafts, three upper and three lower rings and guide
vane blades, two stator housings with foundation plates and other smaller parts.
Zorana Mihajlović, the Minister of Energy, Development and
Environmental Protection of Serbia, noted at the signing ceremony that this document should facilitate more efficient operation for
Djerdap-1 and the Serbia Electric Utility Power Company (EPS)
and improve the plant’s reliability and performance.
“When all six units of our largest HPP are finally renovated, its
capacity will increase by 66 MW,” the minister emphasized. “Some
may think that this is not enough. But perhaps it is this very capac-
ity that we were missing so much, for example, last winter. Every megawatt is crucial for Serbia now.”
Zorana Mihajlović added that the Djerdap-1 reconstruction will also allow the
Balkan country to strengthen its positions
on the electricity export market. In fact,
Serbia earned 68 mln euros from such exports over the first six months of 2013,
which is a 30% increase in comparison
with the same period in 2012.
Vladimir Stepanchenko, in turn, stated
that the start of the new phase of HPP
renovation confirms the huge positive experience of collaboration gained by the
Russian company and Serbian power engineers. He added that almost half a century of sustained operation on the Danube
Megawatt
indicate the competitive strength of the
Russian equipment. Vladimir Stepanchenko expects further collaboration between
Serbian and Russian companies, and between the two countries as well.
The potential is great
So far, two of the six power plant units – the
sixth and fourth – have been fully renovated.
According to the schedule agreed by the
Russian and Serbian parties, the renovation
of the fifth power unit is to be completed in
early 2015. The three remaining units are
next in turn. They are to be commissioned
one unit per year starting from 2016.
Mikhail Tsvetkov, the Director of Power Machines – Serbia, points out that the
key section of the agreement signed in
November of 2013 is the clause which
enables the Russian company to receive new orders to renovate hydro turbine and hydro generator equipment at
Djerdap-1 directly from the Serbian party without having to go through a tender process.
“I see this as an opportunity for the development of the project because, believe me, over the next five years allocated for the work at the remaining four HPP
units, we’ll be able to contract new volumes more than once, and in this respect,
the supplement signed will not be the last
one,” said Mikhail Tsvetkov.
The Serbian hydro power market has
potential, he added. In addition to Djerdap-1, an overhaul is also required at
Djerdap-2 HPP, which is equipped with
10 bulb turbines and generators from LMZ
and Electrosila of 27 MW capacity per unit
that need to be entirely replaced.
Furthermore, the Serbian authorities
have high hopes for a new plant, Djerdap-3,
which will consist of four hydro power units
of 600 MW each. Zorana Mihajlović asserts
that the project is generating interest from
the leading power engineering companies
of Europe and China, among others.
According to Mikhail Tsvetkov, the trust
and commitment of clients not only in Serbia, but in other East European countries
as well will largely depend on how well and
how quickly the Russian company performs
its obligations under the contract with Djerdap-1. For example, if we consider the thermal, rather than the hydro power industry,
in the former Yugoslavia alone, 20 power
units have been retrofitted with the Power
Machines’ equipment with a total capacity
of almost 4,000 MW .
There is a major shortage of electricity in the Balkan Region. This brings opportunities for the leading Russian power engineering company to enhance its backlog
of orders.
Andrey SUBBOTIN
Djerdap-1 HPP dam
Equipment for Djerdap-1 HPP being accepted at Electrosila
Impeller blades for the Serbian power plant in the LMZ assembly shop
April 2014 | International (special) issue 2(2)
23
PRODUCTION Krasny Kotelshchik
SECRETS OF INTENSE COMPETITION
Led by a new CEO, Krasny Kotelshchik, together with Power Machines,
is ready to compete with the world’s leading boiler power equipment
manufacturers
In situations where the externals develop to a maximum advantage, whether for a single person or a large business, it is very
important to take time by the scruff of the neck and draw up
a considered plan of action to make the best of the available
chances for success. Such is the case with the Taganrog BoilerMaking Works (TKZ) Krasny Kotelshchik. The integration of the
plant into the structure of Power Machines, which started after it
had been acquired by EMAlliance (Krasny Kotelshchik is its core
production asset) in early 2012, is now entering the home stretch.
This means entirely new prospects are opening up for Krasny Kotelshchik. Ilya Subbotin, assigned to the post of Director General
24
of EMAlliance and Krasny Kotelshchik in
October of 2013, will have to gain a clear
understanding of which direction to take
and how to achieve the goals identified.
The top manager is confident that being
under Power Machines’ wing and thanks
to a considerable number of its own competitive advantages, Krasny Kotelshchik
is ready to rival the world’s leading power
equipment manufacturers.
Two years of changes
“The Taganrog plant has already reached
quite a high degree of integration into the
group’s structure since Power Machines
acquired EMAlliance and its HQ plant –
Megawatt
“While all EMAlliance structures, located in Taganrog, Moscow, Podolsk and Barnaul, became TKZ branches, TKZ remains
a manufacturing site and every branch is an engineering centre.
This will help to achieve a better synergy – that was Power Machines’ principal aim in acquiring EMAlliance and TKZ,” Ilya Subbotin emphasizes.
Potential for new victories
Accomplishing all these tasks and, what is more, finding ways
to increase production volumes at Krasny Kotelshchik, reduce
costs, improve quality, and optimize business processes requires
a wealth of experience and much knowledge from the company’s management. Ilya Subbotin has a finance and power engineering education, work experience in various positions at several large companies behind him, and, of course, he has five
months’ experience in one of the key positions for any business,
having worked as the Director of economics and finance at Krasny Kotelshchik and
EMAlliance.
The integration into
The Director General is upbeat about
Krasny Kotelshchik’s prospects and is conthe structure of Power
fident that with proper management and
pinpoint investment, its potential will alMachines is entering
low the business to gain a market-leading
the home stretch
position in the world within 3-5 years. The
company’s consistent market effectiveness
in the post-Soviet markets (the company’s
share in the CIS countries exceeds 60% for
conventional boilers, 40% for waste heat boilers, and 80% for
heat exchanger equipment), as well as its reputation and the excellent references of its equipment across the international markets formerly influenced by the Soviet Union (Iran, Iraq, Bangladesh, Syria, India, China, Vietnam, Cuba, and East European
countries) are seen by Ilya Subbotin as the factory’s advantages.
The company has a high level of competences in conventional boilers (gas and oil technology and various coal types including low calorific value coals). In fact, it unites a number of boiler
making engineering schools in Taganrog, Podolsk, and Barnaul.
“We are good at developing powerful pulverized coal-fired
boilers with both sub-critical and ultra-supercritical steam parameters, especially when it comes to the combustion of low-volatile solid fossil fuels such as anthracite or lean coals,” Ilya Sub- Waste-heat boiler
module
botin explains.
Krasny Kotelshchik – which is to say, almost two years ago, but the process is not
yet finished,” states Ilya Subbotin.
He adds that the company’s structure
has now been aligned with Power Machines’ unified organizational and functional structure. In particular, it is common
practice at other sites – Leningradsky Metallichesky Zavod and Electrosila – for designers to work side by side with process
and production personnel. Thus, designers and salespeople were transferred from
EMAlliance to TKZ at the first integration
phase, and now the consolidated company is to be both the manufacturer and the
seller of power plant engineering products.
April 2014 | International (special) issue 2(2)
25
PRODUCTION Krasny Kotelshchik
High-pressure heater
It should be noted that Krasny Kotelshchik has been licensed by world leader Nooter/Eriksen, USA, to manufacture
its waste heat boilers, which is direct evidence that the company has a highly competitive product. Last but not least, its industrial park boasts the most advanced
equipment and highly qualified personnel
– this is the boilermaker’s trump card.
TKZ unites a number
“Our focus on cliof boiler making
ents, development of
associated competenengineering schools
cies along with technical retrofitting and
in Taganrog, Podolsk,
gains in performance
and Barnaul
are the main secret of
our strong competitive
position in the market,”
Ilya Subbotin adds.
From minus to plus
However, despite its multiple strengths,
there is much for Krasny Kotelshchik to
work on. For example, such advanced
and sought-after products as ultra-supercritical (USС) boilers and circulating fluid-
26
ized-bed (CFB) boilers are not yet featured in the plant’s product range. It is crucial, Ilya Subbotin believes, to be as flexible
as possible in both pricing policy and in the context of collaboration, particularly in financing projects through equity. Furthermore, the potential to increase operating efficiency has not been
fully tapped out, services are not yet sophisticated enough, and
it’s necessary to intensify labor productivity. Settling all these issues lies ahead for Krasny Kotelshchik in the nearest future and
the quicker this is done, the sooner the factory will strengthen its
positions in the Russian and international markets.
Together means greater efficiency
Ilya Subbotin is confident that when Krasny Kotelshchik is integrated into Power Machines, a considerable synergy effect will
be achieved, offering the maximum advantages not only to each
single business and the group as a whole, but also to the company’s clients.
“The amalgamation of TKZ and EMAlliance with Power Machines is beneficial for both parties: while TKZ and EMAlliance
tap into the resources and infrastructure of a large company,
Power Machines gains the opportunity to provide its clients with
integrated power unit solutions right up to the completion of turnkey projects, the possibility to provide a full range of warranty
and post-warranty services,” Ilya Subbotin says.
Importantly, TKZ holds one of the most prominent places in
the structure of Power Machines because a boiler island can
account for up to 30% of the total price of thermal power plant
equipment.
Megawatt
“Now that it is under the umbrella of Russia’s largest power
plant engineering group, Power Machines, TKZ occupies a much
stronger position in negotiations with customers,” Ilya Subbotin
adds. “Collective work is being done in every sphere: sales work
together with sales support, we go on business trips together,
conduct negotiations, and do in-depth studies of tender bids and
contracts. We participate in exhibitions and conferences together. Just like other companies within the group, TKZ is actively involved in shared corporate programs, SAP ERP being the main
one. Jointly developing and offering power units with supercritical
steam parameters to clients, particularly in the Vietnamese and
Indian markets, are elements identified by Ilya Subbotin among
the projects that have already been implemented since TKZ’s integration into Power Machines
The journey begins
Another important joint project implemented by Krasny Kotelshchik together with Power Machines is a kind of “roadmap” for the
development of Krasny Kotelshchik and EMAlliance over the next
few years. According to Ilya Subbotin, it consists of two basic
documents: a product and market strategy and a strategic business plan. Again, it is the common task of Krasny Kotelshchik
and Power Machines to implement the points set forth in these
documents. The major areas to be focused on include products
and technologies, commercial and financial strategies, and the
enhancement of efficiency. A number of important steps have already been taken.
“In the sphere of products and technologies, for example, new
products and technologies with good prospects for promotion in
the market have been introduced, among them: USC and CFB
boilers, enhanced waste-heat recovery boilers for the stimulation
of oil production, and HP once-through boilers,” the director general says. “The challenge of gaining an increase in complete supplies of boiler island equipment is being met by enhancing technical expertise in auxiliary equipment such as flue-gas purification,
ash-and-slag removal, and fuel conveying systems.”
In the sphere of improving efficiency, steps are being taken to
increase labor productivity, including cost and overheads reduction and rightsizing; a program to optimize procurement and increase the reliability of supplies is also being implemented. The
task of improving working capital is being tackled and efforts to
streamline design and engineering execution are being carried out.
Ready to be the best
“To attain these goals, Krasny Kotelshchik, as well as
EMAlliance and Power Machines, will certainly have to make
major efforts and allocate time and financial resources; the entire
team will have to work strenuously,” Ilya Subbotin says. There
is a chance that the going will be tough, but the director general
is certain that the company will find a way to weather the storm,
thanks in no small part to its tandem with Power Machines. He
explains that as well as making it possible to provide the most
sought-after and well-paid integrated solutions, the consolidation
also considerably improves management efficiency since, as with
the overwhelming majority of modern Western multi-corporate
enterprises, many vital functions (research and development,
procurements, logistics, sales, and so on) are going to be
coordinated from one centre.
“Resources have been consolidated; manageability and economic performance have been enhanced. The integration into one
structure will enable more succesful competition with global power
plant engineering leaders in both overseas and domestic markets,
and will increase the company’s financial, personnel, and industrial strengths,” Ilya Subbotin concludes optimistically.
Natalya TIMOFEYEVA
April 2014 | International (special) issue 2(2)
Low-pressure drum being transported for machining
Ilya Yevgenyevich Subbotin
was born in the settlement of
Reftinsky, Sverdlovsk Region,
in 1981. In 2003 he graduated
from the Ural State Technical
University
with
degrees
in Business Finance and
Renewable Energy Sources.
He worked at Coca-Cola HBC
Eurasia between 2003 and
2008, Severstal Resources
in 2008 – 2011, and OJSC
Fortum (formerly TGK-10) in 2011 – 2013. He is married has a
daughter.
27
HR Global Educational Program
NEW KNOWLEDGE FOR BEtter RESULTS
The greatest educational campaign in the history of
Power Machines, involving over 700 managers from
various levels, has been completed
People are the key to success for any business. A cohesive team is capable of both keeping a company afloat during even the severest
of economic storms and of driving it past competitors toward the leading market positions.
Realizing this, Power Machines implemented
its largest ever educational program in 2013,
involving over 700 people, all of them divisional
managers from across various levels.
Non-stop training
“Power Machines traditionally devotes considerable attention to staff training and development issues,” says Maxim Rumyantsev, HR
Director at Power Machines.
“Over five thousand people
At least three
are trained each year. Our
major focuses include: traindirectors and heads
ing within the Power Machines Business System
of departments
(PMBS) project in the followdelivered reports in
ing directions: Client Focus,
Labor Safety, Enhancement
each module
of Engineering Development; Project Management
Enhancement; Mergers and Acquisition; and
training for production personnel – senior and
28
lower level foremen, process engineers, workmen, who take various
professional development courses.”
To train workers, Power Machines has received a permanent licence
from the St. Petersburg Administration’s Committee for Education to carry out educational activities. This has enabled a reduction in training
costs and permitted the plants to train their own skilled workers without
detracting them from the production process.
Power Machines also provides senior and final-year students with engineering, manufacturing, and pre-degree apprenticeships annually.
Common standards
Most challenges encountered by Power Machines in HR issues are
common for all machine builders in St. Petersburg. They include insufficient competencies among youngsters and challenges in learning
new technologies, including computing. To this we can add the high
level of competition on the power plant engineering market. All of these
considerations set new tasks for the concern’s HR departments. First
and foremost, they involve optimizing the performance of HR departments themselves.
Whereas previously such sections existed separately at each enterprise, today there is a single service center at Power Machines where
wages are calculated and training information is entered, and the center will expand its services in the future. Furthermore, all HR leaders are
working together to develop common standards and personnel management methods for working with the staff, including adaptation methods and common standards for their evaluation. Unified training programs are also being developed.
Leadership, a unique responsibility
“While developing corporate training programs, we saw clearly the
need for focused work with departmental managers at various levels,” says Maxim Rumyantsev.
Megawatt
As a result, two programs, Achieve More
Together and Master Class, were developed
at Power Machines. According to the HR director, the need for changes in the company
that will eventually reduce production costs,
improve quality, and change people’s attitude toward the company was the key reason why such a massive corporate training
course designed for 700 people had to be
developed.
In theory and in practice
It took approximately half a year to prepare
The Achieve More Together Program. Its
format was developed by Severstal’s Corporate Personnel Development Center and
adapted for Power Machines by the company’s HR Department with the active involvement of the PR and Advertising Department. The program’s main goal was to
support the managers of every production
unit through the changes inherent in Power Machines’ Business System. It was particularly important to teach managers to apply practical management tools, provide
comprehensive information on the company’s mission and values, give insight into
the details of company strategy, and to lay
the groundwork for feedback and networking with peers from various subdivisions and
management groups.
The program was also intended to ensure ongoing communication between the
heads of production units and the company’s top management including PMBS, HR,
and PR managers. The Achieve More Together program encompassed TOP-30, TOP-100 and TOP-300 managers, including the
director general and his deputies, plant directors, and the heads of
offices, departments and shops and their deputies.
Another group of 320 people – TOP-1000 line managers (supervisors, foremen, shift and floor managers) – were trained under the Master Class Program from May to November of 2013. The
three educational modules, which constituted the training, were similar for both Achieve More Together and Master Class. They were: Power Machines’ mission
and values as the basis for the corporate culMore than 700
ture; corporate personnel management tools;
divisional managers
and methods to enhance team work performance. In addition, the Achieve More Together
from various levels
Program included training in executive decision
making methods and practical training in pubcompleted training
lic speaking skills.
in 2013
Despite their serious titles, the modules did
not consist solely of desk studies. The knowledge acquired was practiced in the course of
business games and round-table discussions in small groups. The
state-of-the-art multimedia used and the field format made the process fascinating in itself and created an immersion effect.
Dialogue training
“Maintaining a constant dialogue with trainees is an important feature
of both Master Class and Achieve More Together,” Maxim Rumyantsev
emphasizes. “We polled our trainees after each module, and also discussed program results with participants. This allowed us to adjust the
curriculum after each training from group to group when necessary.”
More than fifteen instructors were engaged in the courses, six
in Master Class and ten in Achieve More Together. Furthermore,
at least three directors and heads delivered reports in each module, and top managers also opened each module. The teaching
staff included both managers from Power Machines and exter-
April 2014 | International (special) issue 2(2)
29
HR Global Educational Program
nal expertsfrom business training companies. As outsiders, the latter could see which
education details required improvement and
make their suggestions.
Stronger together
The fact that managers from key subdivisions
have made and built up contacts is seen by
Maxim Rumyantsev as the main outcome of
the 2013 large-scale educational programs .
“This is particularly important for the subdivisions, which participate in the “Power Machines’ Business System” project, namely for
production workshops and design bureaus
including Krasny Kotelshchik, the Taganrog
boiler plant that has joined the structure of Power Machines fairly recently,” says Maxim Rumyantsev. “The task was to give managers
an opportunity to talk to and get to know each other better. They were
working in different groups throughout the year and realized that,
working together, they could complement each other. They disputed,
discussed, and criticized, but no one was indifferent.”
Generally, according to the HR director, not only did Achieve
More Together and Master Class facilitate the development of key
leadership skills, it also greatly promoted involvement – from foreman to top manager – in discussions of problems arising during the
lead times and collective decision-making. As the trainees admit,
since the training they now resort more often to simple management techniques such as exchanging ideas with employees, giving praise, involving subordinates in the discussion of production
tasks, and recognizing the importance of an employee’s opinion in
the problem solving process. Now they have become confident in
using lean production tools at their workplace and they feel like an
affinity group. As a result, internal communication within the company has improved.
Towards new knowledge
In 2013, the programs, Achieve More Together and Master Class,
were completed by most managers. In 2014, 140 people are going to be trained in Achieve More Together and three streams of
90 people each are to attend Master Class. Managers from Kaluga Turbine Works and Power Machines – Reostat Plant are joining
the training too. Another 140 people will participate in Achieve More
Together in 2015.
“We intend to also use the tested and proven format at singleday conferences for specialists in similar roles to train them to make
decisions and choose strategic development areas for separate directorates,” Maxim Rumyantsev adds. “The main goal pursued by
all training programs, whatever group of employees they are meant
for, is to make the business more efficient.”
Natalya TIMOFEYEVA
30
Megawatt

Download Report