MAN Ferrostaal wins power plant contract

14.10.2008 -

MAN Ferrostaal has put into effect a contract to build two gas and steam turbine power plants in Zulia state, Venezuela. The ordering customer is ENELVEN, the public power utility for Zulia. The two gas and steam power plants are designed to feed 1,000 megawatts into the country’s power grid and thus to secure the power supply of the whole region. In cooperation with its 100% subsidiaries Ferrostaal ProCon de Venezuela and Koch de Portugal, MAN Ferrostaal as general contractor takes responsibility for all engineering, procurement and construction (EPC) for the two plants. The order volume exceeds 700 million euros.

The Tamare and Bachaquero power plants, with an output of 483 megawatts and 516 megawatts, respectively, are to be built near Lake Maracaibo in Zulia state, some 700 kilometres west of the capital city Caracas. Zulia is the centre of Venezuela’s oil and gas production. MAN Ferrostaal’s long-standing presence in Venezuela and the experience which the company has gained from previous projects in the country is important for the contract. The ordering customer attaches equally great importance to a high local value added, which the company can guarantee through its Venezuelan subsidiary. Up to 1,250 jobs are to be created in the course of completing the two power plants. The positions are going to be filled by recruiting people from the region.

This contract will enable MAN Ferrostaal to maintain and strengthen its position in the power plant construction sector in Venezuela. The construction of Tamare and Bachaquero constitutes the largest gas and steam power plant project in the history of the operator ENELVEN. “The project is a milestone in Venezuela’s energy strategy, because the country’s energy requirements are growing between five and seven percent annually. The new power plants will enable our customer to offer more security in power supply,” said Dr. Klaus Lesker, Member of the Executive Board of MAN Ferrostaal. “The country has large gas reserves and will be able to utilise them with the two gas and steam turbine power plants, ensuring a stable and efficient supply of energy in Zulia.”

The project is the second large contract which MAN Ferrostaal will fulfil for ENELVEN. As recently as June 2007, MAN Ferrostaal handed over to its customer the power plant Termozulia I, which was modernised and upgraded into a combined gas and steam power plant.

About MAN Ferrostaal AG:

MAN Ferrostaal is a worldwide supplier of industrial services for the construction of large-scale industrial plants and machine supply. As a general contractor for plant construction, the company offers project development, project management and financing solutions for turnkey plants in the areas of solar thermal power plants as well as biofuels, petrochemical and industrial plants. In ccoperation with manufacturers of machines and production lines, MAN Ferrostaal offers sales and services in the areas of automotive industries, print and packaging, piping, ships and transport solutions. With 4,200 employees MAN Ferrostaal is represented in more than 60 countries. The company achieved a turnover of EUR 1.4 billion in 2007.

MAN Ferrostaal is a subsidiary of MAN Aktiengesellschaft, Munich. The MAN Group is one of Europe’s leading manufacturers of engineering equipment and vehicles, generating annual sales of around EUR 16 billion. MAN supplies products, systems and services to the capital goods industry and employs approx. 55,000 people worldwide. The core areas operated by the MAN Group, Commercial Vehicles, Industrial Services, Diesel Engines and Turbomachines, all hold leading positions in their markets. MAN is a member of the DAX German Share Index, Germany’s top 30 public limited companies.