Patrick Kron
ALSTOM’S Chairman and CEO

Patrick Kron, ALSTOM’S chairman and CEO told World-Generation during a visit to the US in December that the financial rescue package of 3.2 billion euros “was now fully approved and being implemented”. Short and medium funding needs are covered and contract bonding is available for future needs, sending a strong message to customers and suppliers that ALSTOM is a “long term player”.

Kron’s market overview projects a 3 percent CAGR until 2020. Deregulation is ongoing but meeting cyclical difficulties in the US and Canada where merchant activity is postponed. Latin America is facing regulatory obstacles. Kron sees European markets opening as utilities consolidate and swallow up IPP’s. The target of 12 percent production from renewables and CC PP and steam plant efficiencies are being pushed aggressively by the EU. “Except for China, Asia is adopting a ‘wait and see’ approach”, Kron said adding that ALSTOM has a long track record of serving both private and public clients in over 70 countries. He further projects infrastructure needs in developing countries, replacement of existing infrastructure in developed countries where over 24 percent of worldwide capacity exceeds 30 year life cycles.

“ALSTOM is in a good position to leverage global presence,” Kron admitted because ALSTOM’s number one market position in steam generators, turn key plants, and environmental control systems lead the market. ALSTOM is number two in overall power service.

Kron provided an update on the status of the GT 24/26 fleet acquired from ABB. “ It’s a difficult story with a positive ending,” Kron commented. “The current performance levels are competitive, with 765,000 operating hours and output returned to above guarantee values”.


Q3 04 is the highest quarter in terms of order intake for eighteen months. The main order received in Q3 was a turn key contract, valued at around 430 million euros, to design and build a 1,200 MW GT26 based combined-cycle power plant in Cartagena (Spain) for Gas Natural.

Under the terms of the contract, ALSTOM will supply three single-shaft power trains each composed of one GT26 gas turbine, heat recovery steam generator, steam turbine and electrical generator as well as the overall power plant control system. The plant is scheduled for completion in 2006.

ALSTOM has already completed two GT26 based combined-cycle power plants for Gas Natural, which are currently in operation. This confirms the success of the recovery programme and ensures ALSTOM is again present in this segment with a competitive product,” Kron said.

On a comparable basis, orders in the first nine months of 2004 decreased by 9% as compared to the same period of last year. The level of sales reflects the declining order volumes over the past two years.


The level of order intake in Q3 04 is the highest in two years. Main orders received included a Euro 250 million contract for Sudan, where we will provide ten 125 MW hydroelectric turbines and generators, and an environmental control system (FGD) for Duke Energy in the US (Euro 130 million). The orders received in the first nine months are 12% up on the same period of the previous year.


Order intake in Q3 04, over 1 billion Euro, was at a record level. For the first nine months of 2004, orders have increased by 8% compared with the same period of the previous year, confirming the continued growth of this activity.