On the sidelines of the XXIV St. Petersburg International Economic Forum, Evgeny Pakermanov, President of Rusatom Overseas, and Kirill Lipa, CEO of Transmashholding, have signed term sheet for transaction regarding assets incorporated under TMH-Energy Solutions company.
The parties intent to close the deal by the end of 2021 subject to results of due diligence and assets evaluation. According to the agreement, Rusatom Overseas, a subsidiary of ROSATOM, will become a shareholder of TMH-Energy Solutions. Rusatom Overseas and Transmashholding are currently successfully cooperating on development of railway passenger service based on hydrogen fuel cells under the agreement with the Russian Railways and the Sakhalin regional government signed on the Eastern Economic Forum on September 4th, 2019.
Under the deal terms Transmashholding will retain a majority stake in TMH-Energy Solutions, based on which the parties are considering to jointly pursue business in alternative fuels and energy solutions for transportation, enhance product portfolio and imports substitution in diesel engine manufacturing, implement projects in distributed and backup power generation, develop the hydrogen energy infrastructure.
ROSATOM being a strategic partner and investor of TMH-Energy Solutions can support it with technological and industrial competencies of the nuclear industry and significantly expand its marketing channels and foreign sales.
Joining efforts of ROSATOM and Transmashholding will facilitate creating conditions for emerging a new energy pattern, strengthening technological sustainability of the Russian Federation and expanding its high-technology exports. Potential market volume for the envisaged joint business shall exceed 200 billion rubles within the next decade.
“It is an important step for ROSATOM towards development of new businesses. We see significant opportunities and joint prospects with Transmashholding, and we are committed to the future cooperation and implementation of advanced solutions for various sectors of the economy of Russia. Upon this, it is important that we are going to introduce and develop products which are currently not being made in our country,” stated Kirill Komarov.
“There is a growing demand for integrated energy solutions,” Kirill Lipa says. “That is why in 2020 TMH incorporated a dedicated entity bringing together respective assets for addressing requirements of the market. Its value creating potential has ensured interest and participation of our partners from Rosatom.”
For reference
TMH (Transmashholding) is No. 1 among the manufacturers of railway and urban rail transport in Russia and CIS, and No. 4 on the international market. The company offers a full range of products and services from design to modernization, life cycle service contracts and digital traffic management systems.
TMH is a Russian company with headquarters in Moscow and international branches in Switzerland, Hungary, Republic of South Africa, Egypt, Argentina, Belarus, and Kazakhstan. The holding includes 16 manufacturing and assembling facilities in Russia and other countries, it operates in 30 countries.
Rusatom Overseas JSC (RAOS) is an affiliate of ROSATOM responsible for the global promotion of the integrated offer for construction of nuclear power plants and centers for nuclear science and technologies. The company also acts as an integrator for hydrogen energy industry. Today RAOS is focused on planning and implementation of pilot projects in Russia and abroad, development of Rosatom technologies of hydrogen production, storage and transportation, as well as building long-term strategic and technological partnerships in this area.