ST. PETERSBURG, September 15 (RIA Novosti) - Power Machines (Silovye Mashiny) [RTS: SILM] said Boris Vainzikher, a board member of Russian electricity monopoly UES, has been appointed general director of Russia's leading heavy machinery manufacturer.
The company expects to garner $650 million in revenues in 2006, the new head said.
Power Machines produces equipment for hydro, thermal, gas and nuclear power plants, and the transportation industry. The company has clients in 87 countries. Its revenues calculated to Russian Accounting Standards totaled almost $600 million in 2005, including $7.1 million in net profit.
Vainzikher said the board of directors had approved Friday the main guidelines for the company's development, particularly raising the share of sales on the domestic market in its portfolio of orders.
"Sales on the Russian market currently total 20-23% and we are planning to increase the share to 75% in five years," he said.
He said Power Machines is considering technical modernization of its production facilities, particularly by introducing new technologies, to achieve this goal.
Vainzikher said the company will decide by the end of the year on financing its technical modernization. An additional issue of shares is viewed as a possible source of funding.
Sergei Batekhin, the company's board chairman, said a modernization plan based on the results of a technical audit has been considered. "We need around $300-350 million for technical modernization," he said.
Speaking on the source of funding, Batekhin said: "It can be a public placement of shares or an offering, work with financial companies and involvement in state programs." He said the decision will depend on the cost and economic efficiency of the funds to be attracted.
The controlling stakes in the company are held by the German engineering giant Siemens (25% plus one share) and Russia's UES, which owns a similar stake.
