Alstom Group News

On September 17, The European Commission opened a detailed investigation with a view to examining an aid package which the French Government has put together in support of the Alstom group. At the same time, it found that the conditions are met for adopting an order suspending implementation of and/or payment for the acquisition by the French State of a stake in Alstom and the provision of a subordinated loan. The Commission wishes, however, to continue its dialogue with France and will thus give it one last chance before issuing the order. It has authorised Commissioner Monti, in agreement with the Commission's President, to adopt and implement the suspension order by 22 September unless the French authorities undertake publicly not to take any steps involving…

Chantiers de l´Atlantique, ALSTOM Group, has awarded ABB Marine a contract to supply the electric propulsion system for a new 153,000 cu. M. LNG carrier, owned by Gaz de France. The vessel will be built in France by Chantiers de l´Atlantique and delivered in 2005. The supply of medium voltage power systems to LNG carriers has been a strong growth area for ABB. According to Martinus Brandal, head of ABB´s global Marine business, “In the last three years, we have received orders for medium-voltage systems for 23 LNG carriers with conventional steam turbine propulsion. To the new Gaz de France LNG carrier, ABB will supply a complete propulsion drive system in a redundant electrical configuration.

With the buoyancy in newbuild business witnessed so far this year, the cruise ship orderbook stands at an all-time high of some 48 vessels. Erring on the conservative side, analyst Peter Wild of the U.K.-based consultancy G P Wild (International) calculates that the record workload constitutes 3.2 million-gt of ocean-going newbuildings worth around $14.7 billion. Further expenditure amounting to $6 billion-plus is promised in the near-term on the basis of a raft of options and advanced negotiations and tenders. The aggregate fleet investment offers the prospect of a net capacity increase not far short of the 77,500 lower berths encapsulated in the vessels under construction and on order, while offtake through scrapping is likely to be on a limited scale in the immediate term.

Alstom has said that record orders in the energy sector had boosted its recovery, two and a half years after the group came close to collapse. Net profit in the first half of its financial year shot to 227 million euros (292 million dollars), a leap of 67 percent from the figure for the same period last year, with energy activities providing the brightest spots in Asia, Europe and the United States. Operating profit in the period, which runs April to Septmber, rose by 27 percent to 413 million euros, while sales increased by eight percent to 6.608 billion euros, the company said. The overall Alstom group came close to bankruptcy in 2004 and was the subject of a rescue plan orchestrated by the French state.

Aker Yards and Alstom announced their intention to join forces in shipbuilding in which the companies would establish a new company consisting of the shipyards in Saint-Nazaire and Lorient. Aker Yards would own 75 percent of this new company and Alstom would commit itself to keep the remaining 25 percent until 2010. The transaction would enable continuity in management and the actions taken as part of the “Marine 2010“ performance improvement and cost reduction program already under implementation in ALSTOM Marine. The transaction would have no direct impact on employment. By being part of Aker Yards, the new company would benefit from a broadened product range and strong industrial synergies.