Development of the RUE MTW in 2005-2011


А. Description
of the project capabilities

А1. Project name
(a) Short name: 


Development of the RUE MTW in 2005-2011
(b) Full name: 


Development of the Republican Unitary Enterprise Minsk Tractor Works in
2005-2011”
(c) Brief
description:

the
strategy of the development of the RUE MTW is intended to modernize the
process of production; it implies changing the worn-out and outdated
equipment and introduction of new progressive technologies aimed at
creation of capacities for producing and selling more than 70,000
tractors and vehicles per year.
 А2. 
Project
Stage:

The
business plan has been developed. It has been approved by the
Governmental Comprehensive Expert Examination of 12.04.2005. The project
is under realization.

А3.Participators
and their roles:

(a) RUE MTW,
Dolgobrodskaja str. 29, Minsk 220009, the Republic of Belarus

E-mail:

sales@tractors.com.by URL –

www.tractors.com.by

Technical Manager of the
RUE MTW – L.N. Krupets. Tel.: (+375-17) 230-68-42

Fax: (+375-17) 230-21-11

(b)
Ministry of Industry of the Republic of Belarus. Partizanskij ave. 2/4,
Minsk 220033, the Republic of Belarus. Tel.: 224-95-95, Fax: 224-87-84

 А4. 

Project description

The
strategy of the development of the RUE MTW is intended to modernize the
process of production; it implies changing the worn-out and outdated
equipment and introduction of new progressive technologies aimed at
creation of capacities for producing and selling more than 70,000
tractors and vehicles per year. Estimated volume of investments in the
capital stock according to the project is 577.8 million USD.


A4a.

Project total value (million

of

USD):

768.11

А5. 

Backgrounds/history /general program/ related or similar projects

Minsk
Tractor Works was created on the basis of the Aviation Plant № 453 by
the resolution of the Council of Ministers of the USSR of May 29, 1946.
It was reformed in the Republican Unitary Enterprise Minsk Tractor Works
(hereinafter RUE MTW) in October 17, 2001.

А6. 
Brief
description of the environmental effect:

The
business plan realization implies the use of a part of the capital for
harmful factors mitigation measures by organizing the production process
based on new high technologies.

А7. 


Potential impediments/problems/degree of risk:

Risk
associated with non-granting of the mentioned in the project
governmental support measures; energy resources appreciation risk.

А8. 


Duration and recoupment of the project.

7 / 6.5
А9.

Industry classification of the project:


Mechanical engineering, agricultural machinery engineering

 

В. Capital
cost items (total investments necessary for realization of the project):
В1. Quantity
components of the project:		 В2.

Capital investments (million USD)
(a) Net
working capital gain (purchasing of raw materials, materials,
components)		 190.312
(b)
Purchasing and delivery of high-technology metallurgical and
manufacturing equipment of the production of Switzerland, Germany and
other EU countries.		 433.0

(c)
Other pre-investment and investment expenditures

144.798
TOTAL
 768.11
 
B3. 

Sub-projects according to the placement:		 B4. Project
value (million of USD):
                            
-		                      
-

С. 
Origin
of the capital belonging to the initiators of the project (proprietors,
associates, sponsors):
С1. 
Type of
the origin (grants, investments, share participation/property):		 С2.

Amount (million  USD):

Own
sources of investment according to the project:

 652.077

Loan
and raised funds, among them:

 116.033

Credit
resources of Stock Savings Bank “Belarusbank”

 77.5

State
participation

 38.533

 

D. 
Required investments, deficient funds:
D1. 

Necessary financing, type of necessary financial participation:

Credit
due to lack of own funds mounting to 62.5 million USD.
D2. 
Source
of financing		 D3. 
Financial
implement type		 D4. 

Amount
( million of USD)


Potential creditors of foreign or domestic origin

 Credit 62.5
 

Е. 
Demand (consumers)
and incomes:
Е1. 

Type of
consumers: volumes, prices, Income, countable profit /
savings)
(1)
Type of consumers: agriculture products manufacturers.

(2) Volumes: during the
period of the project realization it is planned to increase the
production of tractors and vehicles from 36,870 pcs in 2005 to 73,225
pcs in 2011.

(3) Prices: selling prices
for the products are quoted according to the prevailing domestic and
foreign markets prices as of the calculating date.

(4) Incomes: net present
value – 20.02 million USD.

(5)
Calculable profit/savings: margin of profit – 1.06, rate of return – 17%

 
Е2. 
Sources
of financing:		 Е3. 
Income
(selling) (million USD)
Income 7832.334

 

F.Operating
costs:
F1. 

Constituencies of expenses, amortization policy, production organization
Typical
operating costs related to the full product and selling cycle
F2. 

Cost  items:		 F3. Amount
(million of USD):

Variable costs		 4580.563
Fixed
costs		 1561.146

Profit tax   		328.137
Other
tax and social payments		 485.280


G. Net profit

G1. Net
profit volume:
G2.
Amount (million USD)

Net
profit:

 877.208

 

Н.
Project
information source:
Н1. 
Filling
form (by):
Head of
the Feasibility Study for Investments Department at RUE MTW – V.V.
Rudkovskij, tel.: (+375-172304416);

H2. Organization (name, address):
RUE MTW,
the Republic of Belarus, Minsk 220009, Dolgobrodskaja str., 29
Н3.  Phone \ Fax \ E-mail:

Telephone number – (+375-17) 230-68-42, Fax – (+375-17) 230-21-11;

E-mail:

sales@tractors.com.by
Н4.   Date:  
March 2008

H5.

Project department identity:
Ministry of Industry of the Republic of
Belarus