Еstablishment of new productions and modernization of operating productions of RUE “MTW” in 2009-2015.
|
А. Description of the project potential |
||
| А1. Project name: | ||
| Еstablishment of new productions and modernization of operating productions of RUE “MTW” in 2009-2015. | ||
| А2. Project status: | ||
| A business plan of the investment project has been worked out, certificates of project approval from Ministry of Industry of the Republic of Belarus (certificate of approval dd. 11.09.2009 No 04-2-10/382), Ministry of Finance of the Republic of Belarus (letter dd. 29.09.2009 No 03-1-12/69), Ministry of Economic Affairs of the Republic of Belarus (certificate of approval dd. 16.10.2009 No 23-02-09/5464), State committee on science and technologies (certificate of approval dd. 21.08.2009 No 07-07/1308) are obtained. | ||
| A3. Participating organizations and their roles (contact persons, telephone, fax, e-mail, Internet page): | ||
| Republican unitary enterprise “Minsk Tractor Works” | ||
| А4. Project description (approaches, objectives, components, results, stages, terms, general financing, advantages, influence on transient economic processes etc.): | ||
| The strategy of RUE “MTW” development is aimed at productivity enhancement, improvement of financial position at the cost of production output increase, introduction of energy-saving and other technologies, providing improvement of quality and price competitive ability of the products, real income growth and social safety of labour collective. The project stipulates increase of production capacity and growth of production volumes to 75,0 thousand of tractor and machine units by the year 2015. For these purposes upgrading of practically the whole technological line of the enterprise, including metallurgical production, mechanical assembly production, cold upsetting production, welding fabrication, heat-treatment production, painting spray processing, assembly production, tool production is stipulated. |
||
| А4а. Total cost of the project (capitalized expenses exclusive of VAT) (million US dollars): | ||
| 427,4 | ||
| A5. Background / history / overall program / related or similar projects: | ||
| Project objective: Creation of capacities for output of 75 000 tractors and vehicles per annum at RUE “MTW”, increase of the production volumes of promising tractor and vehicle models, saturation of the domestic market with hi-technology import-substituting products and promotion of these products to foreign markets. |
||
| А6. Brief description of influence on an environment: | ||
| Production activity at RUE “Minsk Tractor Works” results in annual generation of 133 700 tons of production waste. Among them there are 13 100 t/y of non-hazardous wastes 119 000 t/y of low-hazard wastes (IV class of hazard), 1 440 t/y of moderately hazardous wastes (III class of hazard), 0,22 t/y a year of high-hazard wastes (II class of hazard), 0,065 t/y of extra-hazardous wastes (I class of hazard), and 29 800 pieces of worked-out mercury-bearing lamps per year. Business plan implementation presupposes the use of the funds portion to perform actions intended to reduce the influence of harmful production factors on the environment through the organization of production process on the base of new and high technologies. A number of environmental measures are planned to be taken at the enterprise in order to reduce the volumes of production waste generation and disposal: In 2010 it is planned to reconstruct the paint lines in 2nd foundry shop with transition to casting priming with water-thinnable materials, providing decrease in generation of 3rd class paint waste by 90 tons per year. Moreover the enterprise carries out specific activity aimed to reduce the volumes of industrial waste generation by using them for needs of own production. |
||
| А7. Possible obstacles / problems / risk degree: | ||
| The risk concerning the rise of prices for power resources | ||
| А8. Implementation period / project payback period (years): | ||
| Simple period of project recoupment is 5,1 years. Dynamic period of project recoupment is 6,1 years. |
||
| A9. Project’s branch: | ||
| Agricultural engineering industry. | ||
| В. Items of capital expenses (total investments necessary for implementation of the project): | ||
| В1. Physical components: | В2. Capital investments (million US dollars): | |
| Net working capital run-up (procurement of raw materials, materials, constitutive elements) |
73,7 | |
| Building and assembly works | 31,1 | |
| Equipment acquisition and installation, including transfer costs | 264,2 | |
| Other pre-investment and investment outlay | - | |
| VAT payable when capitalized expenses occur | 10,1 | |
| Total investment outlay including VAT | 379,1 | |
| Payment for longterm bank credit related to fulfillment of the project investment outlay (interest on credit) | 48,3 | |
| Summed demand for investments | 427,4 | |
| В3. Sub-projects on placement: | В4. Project cost (million US dollars): | |
| С. Capital according to the origin source, available with the organizers of the project (proprietors, co-partners, sponsors): | ||
| С1. Type of sources (grants, investments, equity participation / property etc.): | С2. Sum ((million US dollars): | |
| Own sources of investment for project (monetary funds for account of enterprise activities) | 244,5 | |
| External funds, including: |
182,9 | |
| Credits | 115,3 | |
| State participation | 67,6 | |
| Totals for all sources of investment project financing | 427,4 | |
| D. Demanded investments, missing funds: | ||
| D1. Necessary financing, required type of financial participation: | ||
| Credit caused by own means shortness to the extent of 115,3 mln USD. | ||
| D2. Financing sources: | D3. Type of the financial tool: | D4. Sum (million US dollars): |
| Bank | Credit | 115,3 |
| D5. Financial institutions involved in the project implementation: | ||
| Branch No 527 of JSC “Savings bank “Belarusbank” | ||
| Е. Demand (consumers) and incomes: | ||
| Е1. Type of consumers, volumes, prices, incomes, estimated benefit/savings: | ||
| Types of consumers | 1) internal market (Republic of Belarus); 2) CIS countries (Russia, Ukraine, Kazakhstan, Uzbekistan, Turkmenistan and other countries); 3) far-abroad countries (if provided with engine that meets Tier-3 requirements and certificates of conformity with requirements and directives of the countries). |
|
| Volumes | During the period of project implementation it is planned to create capacities for production of 75 000 tractors and vehicles per annum. The main share in commodity composition of output of RUE “Minsk Tractor Works” belongs to tractor machinery production (87.6%). Output in physical terms for 2015 is planned to be 75000 units. | |
| Prices | According to the price parameters the products are able to meet competition in the global market | Е2. Financing sources: | ЕЗ. Incomes (sales) (million US dollars: |
| Tractors sales revenue (inclusive of VAT) over the period of the project implementation | 7 458,6 | |
| F. Transaction and Operating Costs: | ||
| F1. Constituents of costs, depreciation policy, organization of production etc.: | ||
| Ordinary manufacturing costs associated with complete cycle of production and sales of goods | ||
| F2. Cost Item: | F3. Amount (millions USD) 2008: | |
| Material expenses | 4 735,4 | |
| Salaries expense | 1 112,2 | |
| Fringe benefit expenses | 378,1 | |
| Capital consumption | 201,7 | |
| Other costs | 159,9 | |
| Total costs for goods production and sales over the period of the project implementation | 6 587,3 | |
| G. Net profit: | ||
| G1. Net profit amount: | G2. Amount (millions USD) 2008: | |
| Net income over the period of the project implementation, including: |
871,3 | |
| 1.1 Net earnings | 669,6 | |
| 1.2 Amortization | 201,7 | |
| H. Indexes of project effectiveness | ||
| H1. Indexes: | H2. Values: | |
| Net present value | 36 mln USD | |
| Internal rate of return | 24% | |
| Profitability index | 1,13 | |
| I. Source of the information on the project: | ||
| I1.The form is completed (by whom): | ||
| Head of the office of the Department of Technical and Economic Justification of Investments of RUE “MTW” – U.I. Denisovich, tel. (+375 – 172304416); Head of the Department of Independent Economic Analysis and Forecasting of RUE “MTW” -O. V. Ignatova, tel. (+375 - 172308503) |
||
| I2. The organization (name and address): | ||
| RUE “Minsk Tractor Works”, Republic of Belarus, 220009, Minsk, 29 Dolgobrodskaya str. | ||
| IЗ. Phone / fax / E-mail: | ||
| Telephone – (+375-17) 230-68-42 , Tel./Fax (+375-17) 230-21-11; Е-mail: sales@tractors.com.by |
||
| I4. Date: | ||
| March, 2010 | ||
| I5. Departmental identity of the project: | ||
| Ministry of Industry of the Republic of Belarus | ||