Освоение серийного производства

The Batch Production of Inverter Modular Sources of Welding Current

Setting up

1. Initiator

"Kristal" Joint Stock Co.

Address: 41 Dekabristov Str., 327020, Nikolaev, Ukraine

Tel: (0512) 37-18-07.

Fax: (0512) 36-33-48.

Pattern of ownership: collective.

General Manager: Mr. Vyacheslav F. Dymov, Chairman of the Board.

Spheres of activity: the production of: thermal cutting machines; electric welding equipment; oxygen, plasma and laser machines with program management for location, spacing and cutting the blanks, made of metal and other materials; welding stations, semi-automatic and automatic welding machines, welding power sources; food processing and the consumer goods manufacturing equipment.

2. Project Contents

The welding stations, semi-automatic and automatic welding machines stock updating (4600), which was produced and sold by the “Kristal” company to the metal working enterprises of shipbuilding, machine building and other industries in CIS countries. The updating process should be based on modern technologies and the “know-how” of the company.

Project goals: labour input and specific consumption of materials decrease in manufacturing and operation of current sources for arc electric welding and plasma arc cutting; the equipments’ reliability and its adaptability to streamlined production improving, expansion to the new markets.

Project tasks:

The unified complete sets of blocks for batch production launching. These sets are to be used for sources of a welding current from 130 A up to 1200А, sources plasma arc cutting from 5 kW to 100 kW;

Setting up of the maintenance system for welding equipment, produced by “Kristal”. The network are to be created in compliance with the European standards.

The unified modular block of sources of welding current design is based on already produced models of inverter modular sources, which proved to be successful in operation.

The design documentation worked out by high skilled personnel, the productive capacity, energy resources capacities, and successful operation in the market during more then 30 years are the guarantees of the Projects’ successful implementation.

3. Seller's market

Internal (Ukraine) -50 %; external (CIS countries) - 50 %.

4. Forms of Co-operation

Any form of co-operation, which acceptable to investor and guarantees successful results and mutual profits.

5. Investments Amount and the Project Efficiency

Production launching period-12 months from the date of opening the investment line of credit. Annual volume of production and sales: not less than 2 000 modular units.

Seller’s price- US $ 840. Profitability - 20 % (planned).

Total Project Costs: US $ 1 000 000.

The Kristal’s contribution: US $ 500 000.

Investor’s contribution: US $ 500 000.

Payback period - 3 years.

Returns: after the end of the 1st year - 20%; the 2nd year - 40%; the 3rd year - 40% paying proportionally for all the obligations in accordance with the terms of investments receipt.