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Regional Economic Digest



New print office "Citron-Mesherskoye", equipped with unique sheet offset printing facilities, was launched in Nizhniy Novgorod.

No other company in Russia has facilities of this kind. The printing device, made in Czechia, allows printing on heavy-weight paper, which is necessary for production of modern package.
The high quality of the package and the good business ties of the company, having over 30 clients among confectionery plants in Russia and the CIS counties allow "Citron" to gain RUR 25-30 million of profit.

"Nizhegorodskaya Pravda" (Nizhniy Novgorod), 31.08.2000

The last GAZ automobiles to be sent to S.America were shipped to Tallinn on August 30.

According to the representative of GAZ, from Tallin the last lot of automobiles will be shipped to Baltimor, where the company distributing GAZ products in South and Central America will resell it further.
According to the expert estimates, the market capacity in this region is 20-25 thousand automobiles per year. The 2 thousand automobiles shipped recently are only a beginning of cooperation.

"Nizhegorodskaya Pravda" (Nizhniy Novgorod), 31.08.2000


On the tendencies for economic development of the city of Volgograd in 2000.

The economic tendencies were traced out by Alexander Boguslavskiy, deputy head of the city administration and head of the department of economics and investment. He said that in 2000 the total volume of industrial production in Volgograd would reach 117% to 1999. The average salary will amount to RUR 2,400 with the number of vacancies increased twice over 1999.
The forecasts for 2001 stipulate increase in industrial output by further 9% over this year. This is a favorable result, while in the first half of 2000 the city's economic growth reached 20%.
From May 1999 the general economic tendencies include stable increase in physical output, reduced salary debts, profit rise over inflation. Economic growth in Volgograd is steadily under way, making 20% in July, and 19% in August 2000.
Each 1% of increased output brings additional RUR 21 million of the budget gains.

"Noviye deloviye vesti" (Volgograd), 31.08.2000


Novosibirsk regional administration to grant a RUR 1 million credit to flax-growing company "Maslianinskoye."

The money will be directed to maintaining the existing practice of distributing bonuses to local inhabitants for participating in flax harvesting.

"Molodost Sibiri" (Novosibirsk), 31.08.00 (weekly)

"Tatra" (Czechia) considers Novosibirsk as a possible location for a car assembly plant.

Automobiles under the "Tatra" trademark, especially trucks, are in high demand in Russia. This fact brought to life plans to launch the joint venture.
According to experts' estimates, Novosibirsk has all resources (professional, labor, territory) necessary to house a car assembly plant. The matter is under negotiation on the federal level, with the final decision yet to be made.

"Molodost Sibiri" (Novosibirsk), 31.08.00 (weekly)

Novosibirsk instrumental plant launched egg-sorting equipment production for poultry factories.

The final decision on the project was made after thorough research. The research results showed that egg-sorting machines are vitally necessary for a number of factories, possessing outdated equipment. So far devices of this kind are not produced in Russia.
Thus the instrumental factory became Russia's sole manufacturer of egg sorting machines. The Russian machines are 1.5-2 times cheaper than the similar Bulgarian devices, which were imported earlier.
Recently the new machines designed by the factory are based on the old models.

"Molodost Sibiri" (Novosibirsk), 31.08.00 (weekly)


The new management team at Kuznetsk ferroalloy factory reported the business results.

A month ago MDM group became the owner and strategic investor of the factory. Evgeniy Sobolev is vice-president of the group; Oleg Misevra was elected director of the factory. Georgiy Chashin remained chief engineer of the factory and head of production department.
The new management started their activities with the thorough analysis of the financial-economic situation and the production opportunities of the factory and elaborating the purchase and sales policies. Besides, the new management elaborated the social development program.
The new team entered profitable contracts with Magnitogorsk metal smelters, "Azovstal", "Severstal", "Electostal", Volzhskiy piping factory and other well-known factories. Thus, Kuznetsk ferroalloys factory undertook monthly deliveries of 500 tons of alloys to "Severstal", and up to 2,000 tons of alloys to Magnitogorsk factory. The management forecasted monthly revenues amounting to RUR 7.5 million, gained solely from domestic sales. In July the factory's profit totaled to RUR 7.7 million. The plans for September determined certain metal production for certain clients. For the first time the factory marked deficiency in the internal market, which stimulates further development of production.
In August production of ferrosilicon showed a considerable increase - up to 18,715 basic tons, making 103% to the plan target. The necessary repair works were done for the furnaces, equipment, buildings and premises, automobile and rail facilities. The total expenditures on repair works amounted to RUR 18 million in August this year.
The new management team elaborated the program for technical refurbishment up to year 2006. The plan stipulates repair works for the second ferroalloy furnace in the first workshop - with the estimated expenditures of RUR 35 million. The project for modernization of the seventh furnace is under way: repair works at the total cost of RUR 45 million are planned for the second quarter of 2001. The feasibility study for launching the 12-th ferroalloy furnace, being temporally stopped, is being elaborated - the total cost of the procedure is RUR 25 million. Recently construction of the device for dust pressing of the dry gas purification units has begun (RUR 70 million). In autumn the new four-storey building will be commissioned.
Construction of the third electric calcination device and the raw materials treatment line for the electrode production is in the terminal stage; construction of the new engineering block has begun.

"Kuznetskiy krai" (Kemerovo), 31.08.00


Results of the tender for development of a deposit group in Boguchany area will be announced in September.

"UKOS" and "Gazprom" were the main "dinosaurs" participating in the tender. Another grand participant was the recently established Krasnoyarsk oil-and-gas company (KNK), on which there is not much data yet. Experts forecast that the tender results may come out as the Solomon's judgement, and Boguchanskaya deposit group will be divided among the tender participants. They say that this decision would fully meet the region's interests.
In spite of the fact that KNK is related to the well-known "Transneft" group, it was founded by the local business representatives. The company specializes in oil trading. It's plans stipulate winning one of the deposits in Priangarie area and construction of an oil refinery in Uyar.

"Moskovskiy komsomolets" - in Krasnoyarsk (Krasnoyarsk), 31.08-07.09.2000

Krasnoyarsk aluminum factory posted business results for the seven months of 2000.

In the seven months of 2000 Krasnoyarsk aluminum factory reported increased output of raw aluminum, up by 5,080 tons over the similar period of 1999. Out of 492,087 tons of raw aluminum the portion of high-grade aluminum made 88.6% (compared with 87.48% in the 7 months of 1999).
The total amount of payable taxes rose 1.7 times over the seven months of 1999. The total taxes effected to all level budgets and non-budget funds made RUR 1,088,470 thousand, including RUR 394,296 thousand effected to Krasnoyarsk municipal budget. Krasnoyarsk aluminum factory boasts duly tax payments with real money, without using barter schemes to tax payment. In January to June 2000 the factory effected RUR 204,065 thousand to the regional road fund, RUR 47,678 thousand to the federal road fund, RUR 240,646 thousand to the pension fund, RUR 12,941 thousand to the employment fund, RUR 31,060 thousand to the medical insurance fund.

"Segodniashnyaya gazeta" (Krasnoyarsk), 31.08.2000

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