Westinghouse Electric Corp.'s deal with a Finnish company could mean substantial new orders for the Westinghouse power generation business unit, based here.
Westinghouse and Haka-Stroi Oy, a civil construction company in Helsinki, Finland, have entered into a two-year cooperative agreement for power generation projects.Under the agreement, the two companies will identify, develop and supply electric power generation projects in Estonia, Latvia, Lithuania and the Commonwealth of Independent States, formerly the Soviet Union.
The power generation unit will supply the combustion turbines and related equipment for each project. Haka-Stroi Oy will manage plant construction activities. Company officials said they cannot estimate the dollar value of the deal.
The Westinghouse unit has been expanding its work worldwide in recent years and currently has projects in Poland, the United Kingdom and the Pacific Rim. Any projects developed cooperatively with the Finnish company would be Westinghouse's first in the former Soviet Union, widely considered a major region for development of new generations of fossil-fuel power plants.
Haka-Stroi Oy is a subsidiary of Haka Oy, a construction company in Finland, and has been active in the Commonwealth of Independent States for about 20 years. The company is participating in seven joint ventures and joint stock companies in a number of Russian cities, including Moscow and St. Petersburg.
Haka-Stroi Oy currently holds a backlog of orders valued at $350 million, but Westinghouse said the existing projects are not included in the cooperative venture for new projects to be developed during the next two years.