GE ENErGy - Frank Farnel

GrOWTH
ever, we were seeing more customers migrating
to open tendering and inviting a number of EPCs
to compete for their projects.
Selection of an EPC to pursue a project requires
that we consider the timing, size and complexity of
the project, the EPC’s current project load and their
local capabilities and strategy for growth within
the region, as well as the customer’s requirements
and potential local content.
a lot of efforts have been recently made with
the localization strategy, notably in Moscow and
the Kaluga region. Could you tell us more about
this strategy and its impact on the market?
GE has been active in russia since the early
1900s, and we view it as a very important coun-
A wind farm in Poland
try for us, both now and in the future. We recognize
that russia will have to modernize its energy
infrastructure over the next 20 years. Given the climate,
natural resources and current status of the
infrastructure, this is going to be a major long-term
undertaking that will require the participation of
most of the global OEMs.
We’re committed to the russian market. That’s
why, even in the current economic environment, we
continue to invest in both capabilities and human
resources. We’re increasing our energy operational
capabilities in the country and are implementing a
range of initiatives to ensure we can support our
customers and the industry from local bases.
Two recent investment examples include our Power
Technology Center in the Kaluga region and our new
Commercial, Engineering and Application Center in
Moscow. In late March we signed an agreement to
build a new Power Technology Center in the Kaluga
region. We broke ground on the Kaluga center in
early August and plan for it to go operational by
the end of 2010. In its first phase, the new center
will provide office and industrial space for our service
activities in russia and will handle the repair
and service of GE heavy-duty gas-turbine components.
Our immediate goal in russia is to create the incountry
capabilities required to support our current
and future customers as they put GE technology
into operation on their projects. The Kaluga
center is an opportunity to show both our customers
and the government that GE can be a longterm
reliable partner in russia.
The new Commercial, Engineering and Application
Center in Moscow includes a product-demonstration
and training area, where we’ll offer educational
programs, conferences, product training
and hands-on operational experience to our russian
customers. This center allows us to quickly
respond to local utility, municipal and petrochemical
customers as they work to upgrade their
power-generation systems and to help improve
russia’s overall energy efficiency.
We are also investigating various projects where
we can work with or tap into the capabilities of
russian manufacturers.
Last but not least, will the alignment of
gE’s power, Oil & gas, and water businesses
provide new opportunities in Central and
Eastern Europe, Russia and the CIs? are you
already seeing the effects of this merger?
I see the consolidation of these businesses under
the leadership of John Krenicki and the Energy
umbrella as a positive step both for the company
and for our customers. I already see synergies
being realized between the groups that will lead to
more-competitive product and service offerings.
I also think that this structure will make it easier
for our customers and partners to interface with
GE and for GE to offer the most valuable product
and service solutions.
Number 3 l October 2009 CONNEXION l 17