Energy Machine Building Holding Created. Turboatom Included.

Ukraine’s government decided on Wednesday to create the state energy machine building corporation, Ukrenergomash, to include four Kharkiv-based companies: three 100% state-owned (Electrovazhmash, Kharkiv Instrument-Making, Kharkiv Electromechanical), and Turboatom, 25% of which is controlled by private investors. During over the next month the government will prepare and adopt the corporation’s charter. The government says the corporation will create a production cycle for power stations, like General Electric or Russia’s Power Machines. Concorde Capital: The management of Turboatom (TATM) is not thrilled about the consolidation and this may hurt efficiency.  Two out of the three state-owned companies included in the corporation, showed negative net income last year, while TATM posted 7% net margin. Moreover, TATM says that being forced to use inputs from the member companies will decrease its efficiency.