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Basic results of social and economic development of the Republic of Karelia in 2008
In 2008 cost of shipped metallurgical production and ready metalware goodshas made 8593 million roubles, that in established prices exceeds the parameter of 2007 by 7%. Thus, the index of production regarding this kind of activity has made 96.9%, that is basically related to production loss and shipment of goods to Foundry - Petrozavodskmash, Ltd.
Since January 1, 2008 from Petrozavodskmash Joint-Stock Company has separated the Foundry - Petrozavodskmash, Ltd., enterprise where the production volume has made with 30,6 thousand tons, or 88% to the level of 2007, in cost expression production of iron casting has made 815,6 million rbl. (125%) cause by orders with more high added cost.
Positive production dynamics remained at Wä:rtsilä Hardware Plant Joint-Stock Company and NAZ-SUAL branch.
Wä:rtsilä Hardware Plant Joint-Stock Company in 2008 has increased production of hardware products up to 92,3 thousand tons (112% to 2007) due to introduction of modern draw-benches Ernst Koch GmbH & Co KG (Germany).
Aluminium production volume has remained at the level of 2007, however landslide of prices for aluminium from 3200 to 1500 dollars per ton at the London stock exchange of metal and increase of electricity prices have led to increase of production cost, significant reduction of profit and decrease in taxation in budgets of all levels.
In structure of industrial complex of the republic in 2008 relative density of machinery and equipment production has made 3.8%. Thus, the index of machinery and equipment production has decreased from 106.8% in the first quarter to 98.2% by the end of the year that is related to absence of orders to Stankozavod-Deko, Ltd., standing idle since November, 2008, as well as relocation of Onego Tractor Plant, Ltd., to the second industrial platform where production is supposed to start anew in March, 2009.
The leading enterprise of engineering industry of the republic Petrozavodskmash Joint-Stock Company last year has mastered production of the unique columned equipment of primary oil refining for the Nizhnekamsk oil refining factory and containers for nuclear waste storage for the Kola atomic power station. In total in 2008 cost of production produced by the enterprise has made 1,3 billion rbl., or 128% to 2007.
Cost of production of Onego Tractor Plant, Ltd., shipped in 2008 has made 406 million rbl. (64% to 2007), there has been made 246 tractors and machines (76.1%).
In 2008 the index in production of vehicles and equipment has made 122.9%.
Onego Ship-Building Factory, Ltd., in 2008 has performed works on construction and shipment of two dry-cargo ships of Karelia type and the first sea vessel of the new project for the Estonian shipowner.
Cost of production of Avangard Ship-Building Factory, Inc., in 2008 has made 70,9 million rbl., or 80% to the level of 2007. Examinership was introduced at the enterprise in November, 2008 due to adverse financial condition.
In 2008 in production of electric equipment, electronic and optical equipment there occurred the 4% decrease in physical volumes due to reduction of orders in the foreign market.
The most important enterprises of this branch are AEK, Ltd., producing electric wiring for Scania and Volvo heavy haulers and Electrokos, Ltd., (affiliated undertaking of Karhakos, Ltd.) producing electronic equipment for cars.
The Index of production on the chemical production form of activity in 2008 has developed at the level of 96.6%.
One half of all production of this given kind of activity falls on Sibirit-3 Joint-Stock Company (Kostomuksha), producing эмульсионные water-emulsion explosives. In 2008 cost of products produces by the enterprise in established prices has made 635 million rbl. (110.6% to 2007), Mobile Technologies of Production of Explosives investment project comprising five stages is being implemented. Now there has been launched the fourth stage of commissioning the MSZ-14MT "machine-factory".
In textile and clothing manufacture cost of shipped goods produced by the enterprise has made 118 million roubles, the index of production of this kind of activity has made 96.3% that is that is caused by insufficient ordering.
At the same time Vega Plus, Ltd., and Lahti Joint-Stock Company worked stably. During the year it has been made 451 thousand pieces of jersey underware (109.7% to 2007), 1824 thousand pieces of overalls (116.8%).
Physical volumes of production on the generation and distribution of electric power, gas and water form of activity have increased by 4.7% in comparison with 2007. The acieved rates of growth are caused by increase in development by electric power hydrostations of the Karelian branch of TGK-1, Inc., by 6.8% - to 5291 milion kilowatt-hour due to increased afflux in water basins of the hydropower station.
On results of 2008 consumption of electric energy in territory of the Republic of Kareliya has decreased by 0.9%, including by 4.2% by industrial consumers. The structure of electric energy demand within a number of years remains quite stable. In total volume of electric energy demand the basic part was consumed by industrial enterprises 68.3%, on the share of other consumers there fall 20.5%, population consumed 10.3%, agricultural producers consumed 0.9%.
Generation of electric energy by Karelian branch of TGK-1, Inc., in 2008 has increased by 9.4%, by block-stations of the Republic of Karelia - has decreased by 6% due to carrying out of preventive and repair work in the 3 and 4 quarters.
Shipment of the goods produced by the enterprise (foodstuff, including drinks) in 2008 has increased by 20.3% in established prices and has made 4208 million rbl. Production index on this kind of activity has developed at the level of 114%, that is basically caused by increase in production of semifinished meat, animal oils, confectionery products. At the same time, production of meat, sausage products, whole-milk products, bread and bakery products, vodka and distillery products, flour, mixed fodders has decreased.
In the meat-processing branch there has been made 2770 tons of sausage products, or 93.2% to the level of 2007 as a result of changing the line of business of Karelian Meat-Packing Plant, Inc., to production of semifinished meat, and presence of the wide range of similar imported producs. Growth of production of semifinished meat by 16.6% is caused, basically, by processing of poutry received from Korm, Inc. Work at the enterprise is accomplished on expansion of assortment of production, introduction of modern packaging materials for semifinished meat.
Production of whole-milk products was reduced by 12% that is caused by decrease in production volumes of Slavmo, Inc., production of animal oil has increased by 21.3%.
Alcohol production by enterprises of liquor enterprises (branch of Rosspirtprom FSUE Petrozavodsk distillery Petrovsky and Aalto, Ltd.) was reduced in comparison with 2007 by 51.4% due to cease of industrial activity of branch of Rosspirtprom FSUE Petrozavodsk distillery Petrovsky since April 24, 2008 related to reorganization of the parent organization.
Production of bread and bakery products during the year has grown 0.6% less that is related to saturation of the market, decrease in the consumer demand and great volume of products imported to the republic. At the same time, production of confectionery products has increased by 12.5%.
On results of 2008 in the republic it has been produced 42,3 thousand tons of flour (82.9% to 2007), 42 thousand tons of mixed fodders (87.5%). Term of preventive repair of the flour-making mill (full aeration of equipment) has increased for Kondopoga Center of Grain Production, Inc., due to industrial necessity, and work of technical equipment for production of mixed fodders due to modernization is suspended.
Production of commodity fish, including canned fish, has made 59 thousand tons (106.7% to the level of 2007).
Volumes of fish production increased at Alternativa, Ltd., Kemskie Promysly, Ltd., Virma, Ltd., SZRK-2, Ltd., Kapitan-2, Ltd., Markab, Ltd., Keret agricultural production company of the RK, Pobeda agricultural production company of the RK, Raiguba, Ltd., branch of Mir Firm, Ltd., Fish Products, Ltd.
Production of chilled fish has grown 1.3 times, production of seafoods has grown 5.5 times, production of minced meat has grown 1.3 times, production of herring of all kinds of processing has grown 1.4 times. Production of canned food, semipreserved foods has increased by 20.6%.
Price index of industrial producers on the republic for 2008 has made 102% (to December 2007), including: 97.3% on extraction of minerals, 102.3% on manufacturing activities, 109.1% on generation and distribution of electric power, gas and water.
Decrease of price index on products of extraction of minerals by the end of 2008 is caused by significant reduction of cost of iron-ore pellets. Only within the period from October to November they have fallen in price by 26%. Of manufacturing activities, in November the price for metallurgical products has reduced considerably by 27.8%, in December reduction of prices has made 16.4%.
As a result of constant reduction of prices which have begun since April on products of forestry and granting of services, in 2008 the price index as a whole on this branch has made 91.2% (by December, 2007).
Performance of the complex of measures stipulated for 2008 on realization of the Basic directions of investment policy of the Government of the Republic of Karelia in 2007-2010 promoted development of positive tendencies in investment sphere of the republic. Volume of investments into the fixed capital in 2008 has exceeded 22,7 billion roubles, or 106.7% in comparable prices to the level of 2007. Volume of investments into a fixed capital (except for budgetary funds) counting per capita has increased to 32,4 thousand roubles (23,3 in 2007). The volume of foreign investments has made $110,5 million, or 70.2% to the level of 2007.
Further development was observed for the tendency of increase of the share of investments into production sphere which ratio in total amount of investments into the fixed capital has exceeded 51% that is caused by 2.7 times growth of capital investments in production and distribution of electric power, gas and water. In structure of investments into the fixed capital on sources of financing, positions of involved means which relative density on results of 2008 has grown to 64.4% (55.9% in 2007) have become stronger.
It has been completed more than 20 large investment projects in forestry, mining, power and agroindustrial complexes of the region: the next stages of reconstruction and modernisation of manufacture on Kondopoga, Inc., Segezha Pulp and Paper Plant, Inc., and Pitkäl;ranta Pulp Mill, Inc.; construction of rotary cut veneer production line on Bumex Lahdenpohja Plywood Mill, Ltd., and lines on production of wooden apartment houses on Uyutny Dom, Ltd.; modernization of sawmill of Muezersky Logging Enterprise, Inc.; construction of crushing-and-sorting sections of factories producing road metal on Kokkomäki Quarry Joint-Stock Company and Golodai-Gora Quarry Joint-Stock Company; construction of Karelmineral, Ltd., factory producing mineral dressing of slate and gabbro-diabases; reconstruction of central substation of Karelenergo, Inc., in the settlement of Shuya; construction of cattle-breeding complexes for cattle by Megrega Breeding State Farm, Inc., and Ilyinskoye Breeding Farm, Inc., and a number of others.
As a result of realization of investment projects there has been created 2,8 thousand new workplaces, that 1.5 times exceeds the planned target stipulated by the program of creation of new workplaces.
In 2008 work on coordination of activity of federal and republican enforcement authorities, federal departments and establishments in territory of the Republic of Karelia on realization of actions of federal target programs and involvement of state capital investments in economy of the region continued.
On realization of actions of federal target programs (FTP) and federal address investment program (FAIP), due to all sources of financing, it has been involved 4858 million roubles, that is 33.9% more, than in 2007, including 3270 million roubles due to the federal budget (36% more). Volume of investments due to means of the federal budget has made 1748 million roubles, or 132% to the level of 2007. In total amount of investments on federal programs federal investments make 59%.
Due to the state capital investments stipulated on realization of FAIP, in the accounting year in territory of the republic it has been financed 21 building objects with 1282 million roubles of total amount of federal capital investments, that exceeds the volume of 2007 by 11.3%. 1270 million roubles was financed due to means of the federal budget (99.1% of annual limit of federal capital investments), it was spent 1261 million roubles (98%).
In 2008 at participation of the federal budget the following objects have been put in operation upon reconstruction and construction: Petrozavodsk-Suojärvi site of highway, 63 km-65 km; Kochkoma-Tiksha-Ledmozero-Kostomuksha-national boundary site of highway, 64 km-70 km; bridge through the river of Uksa on the 57 km of Suojärvi-Koirinoja motorway; building of Specialised Designation Police Detachment of the Ministry of Internal Affairs of the Russian Federation for the RK in Petrozavodsk; garage for 150 motor vehicles and 125 motorcycles of the Ministry of Internal Affairs of the Russian Federation for the RK in Petrozavodsk; a number of sites of М-18 Kola highway; reclaimed agricultural land of Vilga experimental production farm.
Due to means stipulated on realization of federal target programs, there has been purchased equipment for Besovets airport in Petrozavodsk; objects of the White Sea- Baltic channel were reconstructed and overhauled; housing facilities were constructed and purchased for young families; citizens living in the countryside; retired military men, technological disaster relief operation participants and other categories of citizens.
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