On a new track MVM OVIT

ON A NEW TRACK

In the past two years, MVM OVIT Zrt. (MVM OVIT National Power Line Company Ltd.), a member of the largest state-owned Hungarian corporate energy group, the MVM Group, has taken significant steps to ensure that its specialist capabilities can be utilised in the wider electricity sector. Besides extending their activities, the company focused on establishing new links in foreign markets in order to increase export trades. Edina Beale reports.

2012 was a milestone in the history of MVM OVIT Zrt. The company, whose core business was to construct high voltage power transmission lines and substations for over six decades, had to face the reality that due to the full completion of the transmission line systems in Hungary, it will only be required to carry out small scale projects in this field in the near future.

As a result of this, MVM OVIT Zrt was determined to examine how to utilise its professional knowledge, capabilities and work references acquired in this field. A strategic decision was made to lay foundations in the railway sector and start assembling railway transmission lines. A large railway construction project – worth HUF 6 billion – was signed in 2012 and will run for three years. In addition, MVM OVIT Zrt. was required to modernise the Pilisvörösvár–Piliscsaba and Piliscsaba–Esztergom railway lines. “This indicates that the railway transmission line construction field is reasonably stable until 2015,” says Mr Péter Gopcsa, general director of MVM OVIT Zrt. “If I consider the maintenance work required at the Cegléd traction station, the railway maintenance sector shows a steady future too.”

Long term commitment

Whilst focusing on new directions, capacities have been continuously utilized to serve MVM OVIT Zrt’s two major partners, MAVIR ZRt (MAVIR Hungarian Independent Transmission Operator Company Ltd,) and MVM Paksi Atomerőmű Zrt. (MVM Paks

Nuclear Power Plant Ltd), both members of the MVM Group. Nearly 60 per cent of the company’s HUF 47 billion turnover was generated by these two firms in 2012.

Two large projects including the construction of the 400kV substation in Debrecen and the Martonvásár–Győr 400kV transmission line required by MAVIR ZRt, provided a large chunk of the turnover achieved by MVM OVIT Zrt.

In 2009 MVM OVIT Zrt. began to replace 8 block transformers (DHM 270000/400 type) at the MVM Paks Nuclear Power Plant. “The project which involves purchasing, planning and implementation will be completed in 2014. There are also long-term contracts with this partner to provide maintenance service for the safety cooling water systems, for the reactor and for the primary and secondary appliances,” reveals Mr Gopcsa. In addition, the company carries out high voltage installation and maintenance works and provides welding and pipe assembling services as well as repairing steel structures for this nuclear power plant.

Expanding abroad

MVM OVIT Zrt is a market-leading company in almost all areas of the energy market in Hungary. There is no other company in this field that can compare in terms of size and diversity. From power plants to energy suppliers, MVM OVIT Zrt serves a wide range of customers with its products, whether it is manufacturing or assembling them.

Whilst maintaining its wide range of products and services MVM OVIT Zrt expects to achieve growth in equipment manufacturing required by power stations. In order to stay competitive the company is looking to conquer foreign markets with its innovative activities. “We aim to introduce our products to the international market and apply for foreign tenders. Currently 10 per cent of our income is from export activities.”

In Kiskunfélegyháza, where MVM OVIT Zrt manufactures boilers and components for power stations, the most significant foreign project was the Vantaan project in Finland; MVM OVIT Zrt. was required to manufacture heat recovery steam generators (HRSG).

Transmission line and substation projects have been completed in Scotland, Germany and Austria. A large and important assignment acquired in 2012 was the development of the Swiss based CERN 66kV substations. “Based on our experiences so far, it is a serious task to work in new technological circumstances, new health and safety rules and in a different language environment,” explains Mr Gopcsa: “This requires huge amount of discipline and good professional preparation. Fortunately,

we have the professional expertise and this is underpinned by my experience and our foreign partners confirmed this, too.”

In the field of steel structure production Mr Gopcsa highlighted the Kutaisi airport project in Georgia. “This signifies the direction we need to take once all of the high voltage power transmission line constructions in Hungary are completed.” Another important result in this field is that due to being a partner of E.ON Germany for many years as a reliable supplier of high-quality steel structures, this year the energy giant has put more faith into MVM OVIT Zrt than ever before. From the total of 11 018 tonnes of steel structures, MVM OVIT Zrt is required to manufacture 4035 tonnes of steel structures needed for E.ON’s transmission construction projects.

“Part of the preparation to serve the foreign market is to establish a stable base office in the target countries. We are considering setting up one in Germany, but this depends on the agreement we will make with our German partners, and on our involvement to join in the several thousand km long high voltage transmission line building programme starting next year in Germany,” explains Mr Gopcsa. “We also have more and more sales representatives in the Scandinavian countries, in the Balkans and in the Ukrainian market.” n