Organisation of the New Machinery and Automatic Systems Production
for Agriculture and Mechanical Engineering
1. Initiator
ROTORMASH Co.
Address: P.O. box 329, 327001, Nikolaev, Ukraine
Phone: (0512) -40-42-68.
Type of ownership: collective.
The chief of the enterprise: Mr. Vladimir Petrushenko.
Sector of activity: research and design works, production and marketing of new machinery and systems of automation.
2. Contents of the project
The essence of the project is, that executing the orders for automation of farms and enterprises of mechanical engineering (shipbuilding etc.), the Rotormash Co. uses its own patents of devices and technologies for the development of new automatic rotor machinery. Today a part of the similar machinery is delivered to Ukraine and the countries of CIS from Germany, the USA, Austria and other countries, but such devices as rotor mills for grain, fertilisers and other materials are a KNOW-HOW of the company. The project is developed with the purpose of capacities creation for manufacturing of the indicated machinery.
Due to removing of the custom duties, reduction of transport costs, use the domestic production base and the direct ties between the manufacturer and consumer excluding the intermediaries, cost of the new machinery and works on automation will be competitive in Ukraine in comparison with that of foreign ones.
3. Seller's market
Internal and external seller's markets. At the first stage (years 1999-2001) the delivery of new machinery will be is made only to Ukraine and countries of CIS.
4. Forms of co-operation
Reception of a long-term investment (sponsor's credit) or creation of a joint venture under an arrangement.
5. Volume of investments and efficiency of the project
There were conducted: research and design works, development of technical projects, market investigation, elaboration of a business the plan; the agreements on delivery of new machinery with the first customers were prepared.
It is necessary to create an assembly and operational development shop, a test laboratory, to purchase special and office equipment, an office, and also to certificate the high-tech products.
Complete cost of the project: USD 500 000.
The contribution of the project initiator: USD 100 000.
The contribution of investor: USD 400 000.
Internal norm of yield of the project (IRR): 139 %.
Norm of yield of the investments (NPV): 260 %.
Term of the project carrying out: 3 years.
Payback time: 3 years.
Profitability: 25 %.