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The new sector, headquartered in France at La Défense, the business district west of Paris, has four main businesses: products (electrical equipment of the ultra-high-voltage and high-voltage electricity transmission system, 51% of sales), with world leading positions in disconnectors and instrument transformers; Systems (network management systems and big turn-key projects, 34% of sales), with a leading position in HVDC solutions (high-voltage direct current) thanks to its expertise in power electronics; Automation (sophisticated information systems for real-time management of electricity grids); and Service. The new sector, headquartered in France at La Défense, the business district west of Paris, has four main businesses: products (electrical equipment of the ultra-high-voltage and high-voltage electricity transmission system, 51% of sales), with world leading positions in disconnectors and instrument transformers; Systems (network management systems and big turn-key projects, 34% of sales), with a leading position in HVDC solutions (high-voltage direct current) thanks to its expertise in power electronics; Automation (sophisticated information systems for real-time management of electricity grids); and Service.


== Scandals and not delivering on time ==
=== Pendolino ===
](from ]) ordered first eight ], with delivery time on 6 May 2014. Despite this Alstom Transport tried to deliver 160 km/h max train, saying that "there are no rail links for it"(ETCS 2 is currently installed on lines under modernization). However the order for trains was clear and PKP Intercity rejected acquiring any train without 250 km/h max legal usual speed. In fact the Alstom didn't delivered on time even 160 km/h and currently(as of May 2014) PKP started to calculate the deal fines. Fines are estimated as about 2,1 mln zł(~697 743.9 USD) per train per month.<ref>http://www.kurierkolejowy.eu/aktualnosci/19371/Pendolino-bez-homologacji-Od-jutra-beda-kary.html</ref>
==See also== ==See also==
{{Portal|Companies}} {{Portal|Companies}}

Revision as of 16:16, 8 May 2014

Alstom S.A.
File:Alstom.svg
File:Alstom HQ (Levallois).jpgAlstom headquarters
Company typeSociété Anonyme
Traded asEuronext: ALO
ISINFR0010220475 Edit this on Wikidata
IndustryPower generation and transmission, transportation
Founded1928 (Alsthom)
HeadquartersLevallois-Perret, west of Paris, France
Key peoplePatrick Kron (Chairman and CEO)
ProductsEquipment, services, and installation for power generation and transmission
Trams, passenger trains, locomotives
Revenue€20.92 billion (2010/2011)
Operating income€764 million (2010/2011)
Net income€462 million (2010/2011)
Total assets€29.63 billion (March 2011)
Total equity€4.152 billion (March 2011)
Number of employees85,225 (March 2011)
Websitewww.alstom.com

Alstom is a large French multinational conglomerate which holds interests in the power generation and transport markets. According to the company website, in the years 2012–2013 Alstom had annual sales of €20.3 billion, and employed approximately 93,000 people in around 100 countries. Alstom's headquarters are located in Levallois-Perret, west of Paris. Its current CEO is Patrick Kron.

Alstom is active in the field of hydroelectric power generation; in conventional islands for nuclear power plants; and in environmental control systems. It is also the manufacturer of the AGV, TGV, and Eurostar trains, as well as of Citadis trams. Alstom is also present in the urban transport market, and is behind regional train models, signalling infrastructure equipment, and a number of associated services.

On 30 April 2014 Alstom and General Electric (GE) announced an offer from GE to acquire the company's power and grid divisions, valued at ~$16.9 billion (€12.35 billion) had been made, and had met with the approval of Alstom's board, in spite of a letter of intimidation dated 27 April to both CEOs from Arnaud Montebourg, France's minister for the economy. French President Francois Hollande said “The role of the state is to make sure the national interest is upheld. We have sufficient means of pressure to ensure that the outcome is good for Alstom, good for French industry, and good for the diversity of energy,” yet Article 21 of the EU Merger Regulation allows governments to block takeovers if public security or the free media is threatened, and there is no veto for energy.

Financial information

Alstom was listed on the London, New York and Paris Stock Exchanges when it was floated on 22 June 1998.

Following the financial reconstruction in 2003 involving the French government, the Group remains listed on the Paris Stock Exchange, but has not been listed on the London Stock Exchange since 17 November 2003, nor on the New York Stock Exchange since August 2004.

History

Year     Points of note
1928 The beginning of Alsthom was from the merger of Thomson-Houston and Société Alsacienne de Constructions Mécaniques (SACM), with its first factory in Belfort.
1932

Alsthom acquires Constructions Electriques de France, Tarbes, a manufacturer of electric locomotives as well as electrical and hydraulic equipment. Transport thus becomes a part of Alsthom

1969

Compagnie Générale d'Electricité (CGE) becomes majority shareholder of Alsthom

1976

The Group merges with Chantiers de l'Atlantique to become Alsthom Atlantique, bringing Marine into Alsthom's portfolio.

1977

Alsthom constructs the first 1300MW generator set for the Paluel power station which set a world record with an output of 1500 MW.

1978

The first TGV is delivered to SNCF. The TGV went on to break world rail speed records in 1981 (380 km/h) and 1990 (515.3 km/h), and achieved the world endurance record for high-speed train lines in 2001, travelling from Calais to Marseille (1067.2 km) in 3 hours and 29 mins.

1986

The Alsthom Belfort site receives an order from EDF for the largest gas turbine in the world (212MW)

1988/89

Breakup of Belgian electrical engineering company ACEC SA: Holding company GCEE Alsthom acquires energy division ACEC Energie SA (hydroturbines, electrical equipment for nuclear industry), and its automation division ACEC Automatisme SA. Alsthom acquires 100% of the rail transport equipment division of ACEC as ACEC Transport.

1989

GEC Alsthom is formed from the merger of the power and transport activities of Compagnie Générale d'Electricité (CGE) and the UK General Electric Company plc (GEC). France's market was no longer sufficient, so the merger was to enable Alsthom to export into Europe.

1994

Rail vehicle manufacuter Linke-Hofmann-Busch (LHB), formerly part of Salzgitter AG group, is acquired by GEC Alsthom.

1995

Outstanding shares in MAN Energie (steam turbines) are acquired

1998
  • GEC Alsthom acquired Cegelec (electrical contracting) as Alstom Power Conversion
  • June: the Group is introduced on to the Paris Stock Exchange and changes its name from GEC Alsthom to Alstom. GEC and Alcatel sell off part of their stakes in the capital (23.6% each).
1998
1999
  • Alstom acquires the Canadian Télécité Inc., a worldwide Centre of Excellence in passenger information and security solutions.
  • Alstom and ABB merge their energy businesses in a 50-50 joint company known as ABB Alstom Power.
  • Alstom sells its heavy duty gas turbine business to General Electric.
2000
2003
  • (April) Alstom sells its industrial turbine business (small to medium gas turbines 3-50MW, and steam turbines to 100MW) to Siemens for €1.1 billion.
  • In 2003 Alstom was undergoing a financial crisis due to poor sales and debt liabilities, with the potential to force the liquidation of the company; in part due to $4 billion costs due to a design flaw in the turbines of a 2000 acquisition from ABB Group, as well as collapse of customer Renaissance Cruises. Alstom's share price had dropped 90% over two years, and the company had over $5 billion of debt. Subsequently Alstom would sell several of its subsidiaries to raise funds.
2004
  • January: Alstom sells its T&D activities to Areva.
  • The French State takes up a 21% stake in Alstom's capital to support the recovery of the company.
  • Alstom delivers the Queen Mary 2, the world's largest ocean liner, to Cunard.
  • Alstom sells Alstom Power Rentals to APR LLC later becoming APR Energy LLC
  • Alstom sells the diesel locomotive manufacturer Meinfesa (Valencia, Spain) to Vossloh AG.
  • Alstom receives EU-approved French government bailout worth €2.5 billion.
2006
  • Alstom sells its Marine Division to the Norwegian group Aker Yards. Alstom commits itself to keeping 25% of the shares until 2010.
  • June 2006, Bouygues group acquires French government 21% holding, for €2 billion, (increased to 30% by March 2011) Later in the year, Bouygues increases its shareholding to 24%.
  • Alstom sells Alstom Power Conversion which became Converteam Group in a leveraged buy-out (LBO) deal funded by Barclays Private Equity France SAS
2007
  • Following a new Graphic Chart, the Group name is now written "alstom", with the exception of the legal entities which are written with Alstom in capitals, e.g., Alstom S.A.
  • April: on a test run in France, TGV Est set the world speed record for rail vehicles of 574.8 km/h
  • 25 June: Acquired the Spanish wind turbine manufacturer Ecotècnia, and was named Alstom Ecotècnia until April 2010, when the Ecotécnia name was dropped. The new entity legal name is Alstom Wind.
2009 Alstom acquired 25% +1 share of Russian Transmashholding.
2010
  • Alstom announces opening of a wind turbine assembly facility in Amarillo, Texas
  • Alstom re-acquires the Electric power transmission Division of Areva SA, which had previously been sold to Areva in 2004. A new division is created called Alstom Grid.
  • Alstom opened a state-of-the-art turbine manufacturing facility in Chattanooga, Tennessee, to address the North American power generation market
  • Alstom inaugurates new hydropower manufacturing facility in China
2011

Alstom and the Iraqi government sign a memorandum of understanding regarding the construction of a new high-speed rail line between Baghdad and Basra.

2012
  • Alstom begins construction of factories at:
    • Sorel-Tracy, Quebec, Canada (passenger rail vehicles), in part to construct vehicles for a $1.2 billion (Canadian) order from Société de transport de Montréal awarded to Alstom/Bombardier.
    • Cherbourg (Turbine blades in association with LM Power, wind turbine towers), and at Saint-Nazaire (Nacelles and generators) to construct wind turbines, after a consortium of Alstom (Alstom Wind), EDF, and Dong Energy was awarded three French offshore wind farm contracts.
    • Ufa, Russia, joint venture with RusHydro to manufacture equipment for small and medium power hydropower plants (up to ~100MW).
2013
  • In November Alstom announced it planned to raise €1 to €2 billion through sale of some non-core assets, plus the possible sale of a stake in Alstom Transport, and also cut 1300 jobs.
2014
  • Alstom's steam auxilliary components activities (air preheaters and gas-gas heaters for thermal power, other industrial heat transfer equipment, and grinding mills) sold to Triton Partners for €730 million.
  • (24 April) Bloomberg L.P. reports that General Electric was in talks to acquire the company for $13 billion, and claimed the deal had the support of shareholder (29%) Bouygues, as a result the company share price rose 18% in one day. Neither GE nor Alstom confirmed the information.
  • (27 April) Le Figaro reported that an alternative offer of a cash plus asset swap had been made by Siemens. Siemens' bid was reported to involve Siemens acquiring Alstom's power business in exchange for part of its rail transport arm, plus a cash offer as good as GE's and various job guarantees. The Siemens deal was reported to be promoted by french economic minister Arnaud Montebourg, but the two company's product overlap was greater, representing a greater jobs risk, and potential issues with Eurpean competition regulators. Siemens' initial offer was characterised as "defensive" and was met with scepticism from investors and analysts.
  • (29 April) Reuters reports that the board of Alstom accepts a €10billion ($13.82billion) bid from GE for its energy operations, whilst remaining open to alternative unsolicited bids. In a letter from GE Executive Jeffrey R. Immelt to President François Hollande published in Les Echos Immelt gave assurance about continued investment in Alstom's French activities, on security relating to Alstom's involvement in the French civil nuclear sector, and on job commitments made by Alstom Wind regarding its new factories, whilst making Alstom's wind activities available for sale to French investors.
  • (30 April) Alstom confirms an offer representing an equity value of €12.35 billion (€11.4 billion enterprise value) for its power and grid divisions had met with approval from the board, and was under review with key interests including the French state. GE confirmed an $16.9 billion offer representing a $13.5 enterprise value plus $3.4 billion cash.
  • (5 May) General Electric posts offers to buy 1/4 of the shares in Alstom's Indian power and distribution companies: Alstom T&D India Ltd. and Alstom India Ltd. at 261.25 and 382.20 rupees a share (value $278 million and $111 million rspectively) subject to its bid for Alstom SA being successful.
  • (5 May) The French government states it does not back GE's bid, citing concerns on the potential future of Alstom's rail transport business as a smaller separate entity, suggesting that GE transfer its own rail division to Alstom; other concerns were retaining national technological independence in the civil nuclear field, and french jobs.

Company structure, products, and services

Alstom operates in three main business areas: Power generation, rail transport, and transmission.

Power generation

Alstom power activities include the design, manufacturing, services and supply of products and systems for the power generation sector and industrial markets. The group covers all energy sources, including gas, coal, nuclear, hydro, wind. Alstom supplies and maintains all components of a power plant and provides complete turn-key solutions. During the financial year 2007/08, Alstom Power sales amounted to 11.4 billion euros.

The company provides components for power generation: boilers, steam turbines and gas turbines, wind turbines, generators, air quality control systems and monitoring and control systems for power plants, as well as related products.

Additionally the company provides turnkey solutions for the construction and operation of gas-fired, coal-fired and hydroelectric power plants, conventional islands for nuclear power plants, and wind farms

The company also provides a variety of services, including product retrofitting for nuclear and fossil steam turbines and refurbishment of existing power plants, maintenance as well as servicing under long-term agreements for Alstom, GE and Siemens gas turbines.

Transport

Alstom Transport develops and markets a complete range of systems, equipment and service in the railway industry. With a market share of 18% and sales of 5.3 billion euros, the company is number 1 in very high-speed trains, number 2 in tramways and metros, and is among the leaders for electrical and diesel trains, information systems, traction systems, power supply systems and track work. Alstom Transport is present in 60 countries with 26,000 employees.

Alstom's product range includes high and very high speed trains, trams, metros, commuter and intercity trains, as well as tilting trains and locomotives. The company also operates in the rail infrastructure market, designing, producing and installing infrastructure for the rail network to upgrade safety and performance of existing networks, or as part of new turn-key solutions. These includes information solutions, electrification, communication systems, track laying, station utilities, as well as workshops and depots.

Turn-key systems for light-rail systems, including tramways with or without electric overhead lines, metro systems and air-rail links (traditional and automatic), are also supplied.

Maintenance, rebuilding and renovation services are also provided by the company.

Notable products includes series production of the TGV high-speed trains with over 650 trainsets sold over 25 years, as well as the AGV (Automotrice Grande Vitesse) unveiled in February 2008 and which entered service with NTV in Italy in 2012. The company also produces Citadis trams; as of 2009, over 1100 Citadis trams are in use by 28 cities including Dublin, Algiers, Barcelona, Melbourne and Paris. Since 2002, Alstom has been manufacturing the Pendolino tilting train, following the acquisition of Fiat Ferroviaria.

Alstom Grid

A third business section based on power transmission was formed on 7 June 2010 with the acquisition of the transmission business of Areva SA. The division manufactures equipment for the entire chain of electrical power transmission, including ultra-high voltage transmission lines (both AC and DC). The new sector, headquartered in France at La Défense, the business district west of Paris, has four main businesses: products (electrical equipment of the ultra-high-voltage and high-voltage electricity transmission system, 51% of sales), with world leading positions in disconnectors and instrument transformers; Systems (network management systems and big turn-key projects, 34% of sales), with a leading position in HVDC solutions (high-voltage direct current) thanks to its expertise in power electronics; Automation (sophisticated information systems for real-time management of electricity grids); and Service.

See also

References

  1. ^ "Consolidated financial statements Year ended 31 March 2011" (PDF). Alstom. Archived from the original (PDF) on 25 July 2011.
  2. "Want to contact us?." Alstom. Retrieved on 24 September 2009.
  3. bfmtv.com: "Alstom: la lettre de Montebourg au patron de General Electric" 27 Apr 2014 (contains English-language letter)
  4. telegraph.co.uk: "France invokes national security to stop GE buying Alstom" 6 May 2014
  5. Sources:
  6. "Alstom Signalling History", www.alstomsignalingsolutions.com, archived from the original on 9 January 2013
  7. "ALSTOM sells its heavy duty gas turbine business to General Electric", www.alstom.com (press release), 23 March 1999
  8. "ALSTOM completes sale of its heavy duty gas turbine business to General Electric", www.alstom.com (press release), 25 June 1999
  9. "Man acquires ALSTOM's diesel engine operations", www.alstom.com (Press release), 21 February 2000
  10. "ABB to Sell Stake in ABB Alstom Power". tdworld.com. Transmission & Distribution World. 1 May 2000.
  11. "Article: Alstom Takes Over Fiat Ferroviaria". www.highbeam.com. International Railway Journal Article. 1 July 2000.
  12. "Siemens buys Alstom industrial turbines business for €1.1bn", www.power-eng.com, 28 April 2003
  13. "Can Alstom Get Back on Track? It's a financial wreck, and the rescue plan may not work". www.businessweek.com. Bloomberg. 21 July 2003.
  14. "French capitalism. Bull again France's state-backed rescue of Alstom is all too familiar". The Economist. 7 August 2003.
  15. Maurice Braud (22 October 2010), "Alstom rescue plan agreed", www.eurofound.europa.eu, Eurofound
  16. "EU gives Alstom bailout backing". news.bbc.co.uk. BBC NEWS. 7 July 2004.
  17. "Bouygues buys Alstom stake", www.guardian.co.uk, The Guardian, 28 April 2006
  18. "Registration Document - Full year financial review" (PDF), www.bouygues.com, Bouygues, p. 134, 2010
  19. "Converteam Annual Report 2006". www.converteam.com. Converteam. 5 May 2007.
  20. "Alstom and the Russian rail manufacturer Transmashholding sign a strategic partnership agreement". eng.tmholding.ru. 31 March 2009.
  21. "Alstom Outlines Plans for North American Wind Turbine Assembly Facility". 25 May 2010.
  22. "Alstom Acquires Areva Division for 2.3 Billion Euros (Update3)". www.businessweek.com. Bloomberg. 8 June 2010.
  23. "Alstom wants to buy former unit from Areva". www.reuters.com. Reuters. 9 March 2009.
  24. "Alstom creates a third Sector, Alstom Grid, with the acquisition of the transmission business of Areva". www.alstom.com (Press release). Alstom. 8 June 2010.
  25. "Alstom opens in Chattanooga, USA, a state-of-the-art turbine manufacturing facility to address the North American power generation market". 24 June 2010.
  26. "Alstom inaugurates new hydropower manufacturing facility in China; New carbon-neutral factory will reinforce Alstom's leading position in the Chinese hydro market". 4 November 2010.
  27. "Iraq: France's Alstom signs high-speed rail line deal". BBC News Online. 24 June 2011. Archived from the original on 27 June 2011. Retrieved 27 June 2011.
  28. Sources:
  29. Sources:
  30. "Alstom and RusHydro start work on new manufacturing plant", www.waterpowermagazine.com, 15 May 2012
  31. Stothard, Michael (6 November 2013), "Alstom to cut 1,300 jobs and sell assets", www.ft.com
  32. Landauro, Init (6 November 2013), "Alstom to Sell Stake in Bullet-Train Unit - French Conglomerate Targets $1.35 Billion to $2.7 Billion in Asset sales", online.wsj.com
  33. Alstom sells its steam auxiliary components activities to Triton for around €730 million (Press release), Alstom, 4 April 2014
  34. Kirchfeld, Aaron; Campbell, Matthew; McCracken, Jeffrey (24 April 2014), General Electric Said in Talks to Buy France’s Alstom, Bloomberg
  35. Letessier, Ivan (27 April 2014), "Alstom : le gouvernement travaille à un projet franco-allemand avec Siemens", www.lefigaro.fr
  36. ^ Kirchfeld, Aaron; de Beaupuy, Francois; Webb, Alex (27 April 2014), "Siemens Said to Offer Alstom Asset Swap to Beat GE Bid", www.bloomberg.com
  37. Campbell, Matthew; Fouquet, Helene; de Beaupuy, Francois (28 April 2014), "GE's Alstom Bid Gains Steam as Hollande Said Not Opposed", www.bloomberg.com
  38. Meichtry, Stacy; Gauthier-Villars, David (27 April 2014), "Siemens's New Alstom Bid Disrupts GE Deal", online.wsj.com
  39. ^ Protard, Matthieu; Sheahan, Maria (20 April 2014), "Alstom accepts 10 billion euro GE bid for its energy unit", www.reuters.com
  40. Le Billon, Veronique (29 April 2014), Alstom : ce que promet General Electric à Hollande (in French)
  41. Alstom is considering the proposed acquisition of its Energy activities by GE and the creation of a strong standalone market leader in the rail industry (Press release), Alstom, 30 April 2014
  42. GE offers $13.5 billion enterprise value to acquire Alstom Thermal, Renewables, and Grid businesses (Press release), GE, 30 April 2014
  43. "GE makes $389 mln share tender offer for Alstom's India units", www.reuters.com, 5 May 2014
  44. Jolly, David (5 May 2014), "France Says It Opposes G.E.'s Bid for Alstom Unit", dealbook.nytimes.com
  45. Alstom - Our Activities www.alstom.com
  46. The creation of a third sector, Alstom Grid, opens a new development phase for Alstom www.alstom.com

External links

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Last updated: 30 September 2023
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