Republic of Kalmykia

Rosenergomash Concern and the Kalmyk Republic Government commence construction of a new electrical engineering plant.

Kirsan Ilumzhinov, the Head of the Kalmyk Republic, the President of the World Chess Federation (FIDE), and Vladimir Palikhata, the President of Rosenergomash Concern, signed an agreement for construction of Elista Energomash plant at the Hannover Industrial Trade Fair.

Russian Rosenergomash Concern and the Government of the Kalmyk Republic signed an agreement for construction of Elista Energomash plant to manufacture electrical engineering equipment in Kalmykia at the world’s largest International Industrial Trade Fair in Hannover (Germany). This agreement was signed by Kirsan Nikolayevich Ilumzhinov, the Head of the Kalmyk Republic, the President of the World Chess Federation (FIDE), and Vladimir Mironovich Palikhata, the President of Rosenergomash Concern.

After the agreement was signed, Mr. Ilumzhinov made the following comment: “Construction of this plant is another step to increase the investment appeal of the Kalmyk Republic. We believe that Elista Energomash will contribute to the region’s plan to establish its own power infrastructure. In general, construction of modern high-technology enterprises whose products can successfully compete with foreign manufacturers is a critical stage in developing Russia’s economic independence”.

According to Mr. Palikhata, “the initial project investments will amount to EUR 10 million. The plant is scheduled for commissioning in 2008. According to the plan, the plant’s annual turnover will reach EUR 30 million by 2010”.

The production process at Elista Energomash will engage approximately 400 staff who will undergo a special training course. The plant will specialise in manufacturing electrical engineering products for large industrial enterprises.

The project will be implemented by a special-purpose vehicle, Elista Energomash, with 75% of the shares owned by Rosenergomash Concern and 25% – by the Kalmyk party.

The new plant is scheduled for commissioning in 2008.

Elista, Kalmykia