Setting-up of Production
of Conveyor Equipment and Belts with Environmentally-Friendly Covering
Used in Light, Food, Mechanical and Agricultural Industries
1. Initiator
"Коnveyermash" Joint Stock Company
.Address: 49 Engelsa Str,, Nikolaev, 327028, Ukraine.
Tel: (0512) 23-22-91, 23-12-97.
Fax: (0512) 23-50-50, 23-81-46.
The teletype: 272314 CALIBRES.
Pattern of ownership: collective (with further privatization, 41 % of the shares)
General Manager: Mr. Anatoly Roshchin
Sphere of activity: the production and sales of polyurethane belts and conveyors equipment of all dimensions.
2. Project Content.
The core of the Project is to produce the polyurethane conveyor belts by implementing the new technology (which passed the patent clearance). Technology is based on belts covering with melted polyurethane granules film during the process of belts movement. At present the conveyor belts with polyurethane covering are not produced in Ukraine and CIS countries. Now the main produces are: Germany, Austria and Switzerland. The goal of the Project is to create the productive capacities for the 400 mm, 500 mm, 650 mm and 800 mm conveyor belts production. The prices in Ukraine and CIS countries of locally produced belts will be competitive as compared with imported analogues due to reduction of transport and custom costs and usage the local raw materials.
3. Seller's Market
Internal and external.
At the first stage (1999-2000) products are to be sold only in Ukraine and the CIS countries.
4. Forms of Сo-operation
The long-term investment credit obtaining or joint production setting up.
The R & D and design works has been finished, the laboratory unit has been built and the production technology worked out. The contractor design of industrial unit was completed. The necessary equipment was partially manufactured and installed; raw materials for carrying out the start-up and adjustment works have been purchased.
It is necessary to finish the equipment production, to mount ventilation systems, to conduct start-up and adjustment works and to put the industrial equipment into operation. Besides, it is necessary to agree the specifications with the Ukrainian Health Care Ministry and to certificate the products.
Total Cost of the Project: US $ 1.100.000.
Project initiator contribution: US $ 400.000
Investor’s contribution: US $ 700.000.
Internal norm of yield of the project (IRR): 139 %.
Norm of yield of the investments (NPV): 260 %.
Project implementation period: 3 years.
Payback period: 3 years.
Profitability: 25 %