OMZ – Power Machines signed an Agreement of purchase of three subsidiaries of SKODA Holding. The purchase concerns SKODA JS division and SKODA STEEL consortium (HUT? and KOV?RNY). An Agreement was signed by Evgeny Yakovlev, the CEO of OMZ and Power Machines, and Jiri Zapletal, the CEO and Chairman of the Board of SKODA Holding.

?KODA JS concentrates mainly on engineering, manufacturing and servicing for the nuclear energy field and on engineering in the area of petrochemical and refinery industry. The ?KODA KOV?RNY division is a dominant world leader in manufacture of four-stroke diesel motor cranks and wind power station shafts. The combined sales of the companies amount to over 200 mln. US dollars. They employ 1,921 people (as of 31st March 2004).

Once the acquisition is completed ?KODA JS will be incorporated in the Nuclear Power Generation equipment division of OMZ-Power Machines and ?KODA Steel will accordingly join the steel and metallurgy plants.

“The acquisition is a logical step for both parties. For us, it opens doors to the East European market, where we see many opportunities especially in the area of servicing and modernizing of conventional halls of nuclear power plants. For Czech firms, the acquisition will mean easier access to the Russian and CIS power generation equipment and steel markets,” considers the CEO of OMZ and Power Machines Evgeny Yakovlev.

“We are handing over to the investor economically stabilized companies with secure contracts, which have gone through extensive restructuring in the past four years,” said the CEO and Chairman of the Board of SKODA Holding a.s. Jiri Zapletal.

The merger, which resulted in creating of the biggest Russian power equipment enterprise, was announced on 18th December 2003 and approved by the OMZ board of shareholders on 27th February 2004.

OMZ is the largest Russian private heavy engineering corporation. The Company designs, engineers, produces, markets and services knowledge intensive equipment and machinery for the on- and offshore oil and gas industry, including transportation, the nuclear energy and mining industries. OMZ’s 2002 GAAP sales amounted to $435 million, a 39% increase over 2001. The Company has manufacturing and engineering facilities in Russia, USA, Romania and the Ukraine and sells its products to over 30 countries in the world. OMZ is one of four Russian companies whose securities are listed on the London Stock Exchange. The Company’s shares are also traded on the RTS stock exchange in Russia.