General Electric (GE), Inter Rao UES and United Engine have begun the construction of a gas turbine manufacturing facility.
The new plant, located near Rybinsk in the Yaroslavl region, will manufacture, sell and service 77MW low-emission 6FA industrial gas turbines.
The $170m facility will be financed by the OJSC Inter RAO UES Group and external financing.
It is set to start operations in the second quarter of 2014.
The plant is expected to help address the country's growing need for high-performance, mid-sized power blocks in cogeneration and combined heat, and power applications.
GE chairman and CEO Jeff Immelt said the move is an important milestone in the company's near 90-year history in Russia.
"We are pleased to break ground on our new facility with our valued partners INTER RAO UES and UEC and bring GE gas turbine production capability to the Russian energy market," Immelt said.
Russian Technologies State Corp deputy general director Vladimir Artyakov said the joint venture will help fill the gap in the supply of gas turbine units between 60MW and 90MW.
"Our participation in the localisation of components production for General Electric allows us to expand our footprint on the international market for power engineering technology as a second level supplier," Artyakov said.
GE Russia and CIS president and CEO Ron Pollett said: "The facility will employ many highly skilled engineers and create hundreds of additional jobs for partners and suppliers."
Image: GE's 6FA gas turbine is well-suited for industrial cogeneration and district heating. Photo: courtesy of GE.