Russian Cement Plant Turns to GE Technology to Tackle Growing Electricity Demand Caused by Construction Boom

CJSC Inteco Invests in GE's Jenbacher Gas Engines to Power New Production Line at Cement Factory

JENBACH, AUSTRIA-Due to the ongoing construction boom in Russia, high demand for cement has led to an unprecedented rise in the growing need for electricity. To help meet this need, CJSC Inteco has chosen GE's (NYSE: GE) Jenbacher technology to power its new production line in the reconstructed Verhnebakanskiy Cement Plant in Novorossiysk, Russia. The new 2.3 million tons per year production line, which is going to be the largest in Russia in terms of capacity, will enter commercial operation in mid-2011.

"CJSC Inteco will benefit from GE's quick installation time, achieving zero cycle to full operation in no more than 12 months," said Mikhail Bogush, head of construction materials, CJSC Inteco. "We also will profit from the lowest possible life-cycle cost for our plant and an immediate availability of power on demand, which will help us to meet the increasing demands for cement in this region and other regions within the Russian Federation."

Expanding the role of its J624 Jenbacher gas engine into industrial applications, GE will provide 11 J624 containerized generator sets to the cement factory, making this the first containerized, 4-MW J624 generator set in the world. The engines will produce approximately 44.3 MW of electricity with 45.6 percent efficiency for the new production line.

The generator sets were sold to CJSC Inteco through GE's Jenbacher authorized distributor, Max Motors LLC of Sochi, Russia. The engineering, procurement and construction contract was awarded to Max Motors LLC, which will build, commission and maintain the station. The station will operate using natural gas directly from the pipeline.

"This agreement demonstrates both GE's commitment to ensure the latest technology is readily available to our Russian customers and our ability to tailor this technology for the specific needs of the country," said Prady Iyyanki, CEO-gas engines for GE Power & Water. "This gas engine order with CJSC Inteco is significant because it represents our largest to date in Russia. Importantly, our J624 unit will allow CJSC Inteco's plant to run with increased reliability and efficiency with lower operating costs."

GE's J624 Jenbacher gas engine, first introduced in June 2007, is the world's first 24-cylinder unit. Customer benefits include high power density, low installation and operating costs, low specific fuel consumption and high heat recovery rate. A single J624 Jenbacher gas engine has the potential to cover the power needs of about 9,000 European households.

CJSC Inteco is a multi-profile company, which is among the leading players of the Russian developer market. After the launch of its construction business in the mid 1990s, CJSC Inteco has diversified its business activity to the production of cement and other construction materials, panel and monolith house construction, architectural engineering and real estate business. The new production line at the Verhnebakanskiy Cement Plant is the first of the company's ongoing investment projects in the cement industry.

About GE
GE (NYSE: GE) is a diversified infrastructure, finance and media company taking on the world's toughest challenges. From aircraft engines and power generation to financial services, health care solutions and television programming, GE operates in more than 100 countries and employs about 300,000 people worldwide. For more information, visit the company's website at

GE serves the energy sector by developing and deploying technology that helps make efficient use of natural resources. With nearly 85,000 global employees and 2009 revenues of $37 billion, GE Energy is one of the world's leading suppliers of power generation and energy delivery technologies. The businesses that comprise GE Energy-GE Power & Water, GE Energy Services and GE Oil & Gas-work together to provide integrated product and service solutions in all areas of the energy industry including coal, oil, natural gas and nuclear energy; renewable resources such as water, wind, solar and biogas; and other alternative fuels.

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