Ladies and Gentlemen,

The Kharkiv ElektroTyazhMash Research and Industrial Corporation is Ukraine's largest industrial company in the area of electromechanical engineering. ElektroTyazhMash corporation is a state company subordinate to the Ukrainian Ministry of Industrial Policy.

In accordance to a resolution by the Ukrainian government the ElektroTyazhMash Corporation is included in the list of companies to conduct pre-privatization preparations in 1998.

In the course of re-structuring and pre-privatization preparations the ElektroTyazhMash Corporation will create within itself a separate company GeneratorTyazhMash.

The ElektroTyazhMash plant was founded in 1946; the area of its specialization included manufacturing of generators for steam, gas and hydraulic turbines, electrical equipment for tram cars, trolley-buses, electromotives and diesel locomotives, large electric machines including unique ones made by special orders from metallurgical, coal and petroleum industries, as well as sophisticated household appliances.

Manufacturing of generators, steam, gas, and hydraulic turbines, as well as unique equipment will be taken over by the GeneratorTyazhMash company (part of ElektroTyazhMash) in the course of re-structuring and pre-privatization preparations.

Largest Ukrainian thermal power plants are equipped with 200 and 300 MW turbo-generators made by ElektroTyazhMash. Total installed capacity of the turbines is up to 73% of the total capacity of all Ukrainian thermal power plants.

The products of the Corporation were exported to more than 30 countries including Norway, Czech Republic, Slovak Republic, Poland, Romania, Iran, Mongolia, China, India, Bangladesh, Syria, Greece, Yugoslavia, Algeria, and the countries of the Commonwealth of Independent States.

One of the main directions of the ElektroTyazhMash Corporation’s activities is the manufacturing of turbo-generators and hydro-generators.

Annual turnover of the Corporation comes up to $20 million, the main part of it being connected with turbo-generator manufacturing.

Nominal capital and fixed assets of the Corporation are $150 million.

Only 12.6 % of the Corporation’s capacity is in active use; there are facilities for manufacturing of turbo-generators, hydro-generators, large electrical machines, sophisticated electrical equipment for diesel locomotives, electromotives, trolley-buses and tram cars.

The ElektroTyazhMash Corporation offers the following features:

• experience of design, manufacturing, and adjustment of turbo-generators for all kind of power plants;
• experience of upgrading turbo-generators and hydro-generators to increase power and reliability (there is a project in place to increase turbo-generator capacity from 200 to 225–230 MW);
• project of replacing the 200 MW turbo-generator with hydrogen cooling by a 220 MW air and water cooled turbo-generator one; project of upgrading the 300 MW turbo-generator at Zmiyevskaya Thermal Power Plant to 325–335 MW; project of increasing capacity and reliability of 500 MW turbo-generators at Novovoronezh Thermal Power Plant; combined works on creating a new series of turbo-generators with transverse-longitudinal excitation, and power of 120–800 MW.
• experience of service life extension for operational turbo-generators (by improving designs of certain units).

All developments mentioned above are know-how protected by appropriate patents.

The Corporation has well-qualified professionals in all areas of engineering and manufacturing activities.

Considering the general economic state of Ukraine and referring to its power engineering in particular, the non-payment crisis and lack of floating assets necessary for equipment purchase, we have developed an investment project which envisages manufacturing of turbo-generators for nuclear power plants and upgrading of turbo-generators and high-voltage electric engines in use at the Ukrainian nuclear power plants to improve their capacity, reliability and service life, as well as NPP safety in general.

Nowadays the total capacity of generator equipment at thermal, hydraulic and nuclear power plants existing in Ukraine comes up to 54.1 million kW; this divides as 12.8 million kW (23.6%) for nuclear plants which produce over 40 % of electricity total. Ukraine has five operational nuclear power plants such as Zaporizhya, Rivne, Khmelnytsky, Pivdenno-Ukrainska and Chornobyl. All the plants have 220–500 MW and 1000 MW turbo-generators and high-voltage electric engines of auxiliary units made by ElektroTyazhMash.

Unfortunately, now the nuclear power plants are in a complicated state caused by high failure rates for the mentioned equipment.

Some turbo-generators and high-voltage engines installed at the nuclear power plants have exhausted their service life and need urgent replacement while others require reconstructing because of a high failure rate.

220 MW turbo-generators installed at Rivne nuclear power plant are almost through with their service life and are subject to frequent faults. Replacing them with modern ones is strongly required (the customer demand is transverse-longitudinal excitation generators).

1000 MW and 3000 rpm turbo-generators installed at Rivne, Khmelnytsky and Pivdenno-Ukrainska power plants are a forced version of the serial 800 MW model and therefore are subject to a high failure rate. The rotors and stators of these generators require upgrading.

1000 MW and 1500 rpm turbo-generators installed at Zaporizhya and Pivdenno-Ukrainska power plants require upgrading of certain units to improve their reliability and service life.

Expansion of Rivne and Khmelnytsky nuclear power plants will enable to close down the Chornobyl plant.

The ElektroTyazhMash Research and Industrial Corporation has a substantial experience of manufacturing turbo-generators for nuclear power plants. Presently three 220 MW turbo-generators and three 300 MW turbo-generators made by ElektroTyazhMash are operated at nuclear power plants in Russia.

The Corporation has facilities for manufacturing turbo-generators and appropriate qualified personnel, but the present equipment for fabrication of these unique machines somewhat outdated, has accumulated a substantial physical wear; a number of unique tools for making high-voltage engines and windings require upgrading or replacement.

All turbo-generators made by ElektroTyazhMash and operated at nuclear power plants require reconstruction or replacing with generators of our production. This task could be accomplished through a purpose loan with western firms supplying shaft forging, ring bands, insulating materials, process devices for re-equipping of the facilities. This will require investments of $18.4 million.

To replace and reconstruct the operational equipment of nuclear power plants, we consider it expedient to create a joint U.S.-Ukraine venture whose purpose would be accomplishment of a project on replacing and reconstructing the equipment mentioned above, namely:

1. Development of documentation:

• for 325 MW air and water cooled turbo-generator with a transverse-longitudinal excitation, to replace the ones operated at Rivne plant;
• for re-winding the stator of 1000 MW and 1500 rpm installed at Zaporizhya plant, including manufacturing of rods and other winding components;
• for upgrading the stator of the 1000 MW and 3000 rpm turbo-generators at Rivne and Khmelnitsky plants including manufacturing of rods.
• for routine maintenance and overhaul repairs of nuclear power plant rotors;
• for mastering the manufacturing process of spare parts for turbo-generators;
• for mastering the manufacturing process of spare parts for 200–1000 MW turbo-generators for nuclear power plants;
• for maintenance and overhaul repair of high-voltage electric engines;
• for three or four standard sizes of most popular electric engines of 6 kV voltage to organize a commercial production thereof.

The proposed deadline of developing the design documentation is 1999.

2. Technical re-equipment of the ElektroTyazhMash facilities on the basis of appropriate equipment to be purchased using investment resources. These works are supposed to be accomplished in 2000.

3. The multiphase accomplishment of an upgrade and replacement program for nuclear power plant equipment to be started in 2001 and completed by 2010.

This period must include the following operations:

• upgrade stators of three 1000 MW and 3000 rpm turbo-generators;
• re-wind stators of five 1000 MW and 1500 rpm turbo-generators;
• manufacture four 225 MW turbo-generators;
• manufacture 11 sets of spare parts for 1000 MW turbo-generators;
• repair three rotors of 1000 MW turbo-generators;
• repair 130 and manufacture 120 upgraded high-voltage engines.

Estimated cost of all the said works is about $127.2 million.

The project could be expanded and prolonged to replace 48 turbo-generators of 200 and 800 MW capacity at the operational nuclear power plants in Ukraine, which have exhausted their service lives, and also to supply spare parts, do service and overhaul repairs of Russian-made turbo-generators installed at the Ukrainian plants with an estimated price of $130 million, and a respective total cost of $257.2 million. The estimated profit is expected to come up to $50 million which would be also used to repay credits.

The project of upgrading and repair of electrical equipment at the Ukrainian nuclear power plants requires a long-term credit with its stepwise repayment by 2010.

We are also ready to supply turbo-generators offering improved safety features and capacities of 120 and 220 MW with complete air cooling for thermal power plants to be put into operation after 2000.