by Carter Palmer, Power Systems Specialist, Forecast International.
On the banks of the Neva River in Saint Petersburg, Russia sits an industrial entity that has shaped power production in the former Soviet Union for decades. LMZ (Leningradsky Metallichesky Zavod), founded in 1857, is the largest division of Power Machines.
Since 1907, LMZ has produced steam turbines for energy production. Its turbines are installed primarily in Russia and the CIS countries, and it will likely continue to supply steam turbines and power engineering equipment there. Despite supplying a high percentage of worldwide power turbines, LMZ is not a major player in the current market. In comparison to Western producers, its production is forecast to remain steady but minor.
Power Machines, founded in 2000, is a conglomerate of various entities related to power production. Electrosila, a producer of generators for various types of power plants, was founded in 1898. Kaluga Turbine Works, a subsidiary, manufactures steam and gas turbines of smaller capacity along with turbines for the Russian Navy. It was founded in 1946. Its largest division, LMZ, produces turbines for various applications, including thermal, nuclear and hydro power. Altogether, Power Machines is Russia’s major turbine producer with an installed capacity of more than 300,000 MW in 57 countries –fourth in the world for equipment installed.
Steam turbines are a major money maker for the conglomerate; however, production is anticipated to remain low for the coming decade. Over the next 10 years, LMZ is forecast to produce approximately five units on average annually. Because power engineering equipment and generators also bring in revenue for the conglomerate, Power Machines is branching out, particularly in South America, where it has recently acquired controlling interest in FEZER S/A. Hopes for this expansion are high.
While Power Machines has undeniable influence in the former Soviet sphere, expansion into other markets can bring it much sought after revenue.
Some information obtained from Power Machines website:
“Power Machines Annual Report 2015” power-m.ru, accessed September 26, 2016
http://www.power-m.ru/upload/iblock/9fb/2015_powermachines-annual-rep-engl.pdf
Forecast International produces two distinct Power Systems products. The Aviation Gas Turbine Forecast presents the 10-year outlook for aviation turbofan, turboprop and turboshaft engines and more. The Industrial & Marine Turbine Forecast covers the markets for gas and steam turbines, mechanical drive engines, and marine power, among others.
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