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Industry
Production
Important place in industrial potential of the republic is held by such kinds of economic activities, as production of machinery and equipment, fabricated metal products, vehicles, electronic and electric equipment, metallurgical manufacture. The most significant enterprises on these kinds of activity are Petrozavodskmash Joint-Stock Company, Onego Tractor Plant, Ltd., Inavtomarket Karelia, Ltd., Onego Ship-Building Factory, Ltd., AEK, Ltd., branch of NAZ-SUAL, Wärtsilä Hardware Plant Joint Stock Complany.
Under adverse crisis conditions Government of the Republic of Karelia assisted enterprises of processing industries in increase of efficiency of use of capacities, industry modernization, introduction of high-efficiency equipment, development of competitive production.
Thus, support in formation of a package of orders in 2008 has allowed Petrozavodskmash Joint-Stock Company to master production of unique column equipment of primary oil refining for Nizhnekamsk oil refining factory, and containers for storage of nuclear waste for Kola atomic power station. Together with administration of Octyabrskaya railway there have been worked out proposals for loading the foundry of Petrozavodskmash Joint-Stock Company by orders for needs of railwaymen.
Assistance to introduction of over 40 million rbl. modern equipment of KOCH company (Germany) in Wärtsilä Hardware Plant Joint Stock Complany has allowed to reduce industrial costs considerably, to achieve growth of labour productivity, and to increase output.
Due to logging equipment sales slowdown and due to relocation to the 2nd industrial site production of Onego Tractor Plant, Ltd., has reduced. As a result of teamwork of the Government of the republic and the Tractor Factories Concern the decision has been made on assignment of 47 million roubles from the federal budget to Onego Tractor Plant, Ltd., for research and development on designing and production of pre-production models of modern complex loging equipment that will allow to organize production of high-efficiency equipment in immediate prospects.
At participation of the Government of Karelia in November, 2008 there has been prepared a Business-plan and agreed between founders of Promtractor Vagon, Ltd., (Tractor Factories Concern) and Inavtomarket Karelia, Ltd., on creation of an enterprise on the 2nd industrial site of Onego Tractor Plant, Ltd. In 2009 it is planned to release the first consignment of freight open-top wagons, and to begin the batch production in 2010.
Due to reduction of production volumes at AEK, Ltd., at the end of 2008 there has been organized a meeting of the Government of the Republic of Karelia with the management of PKC GROUP OYJ concern. By results of the meeting the drafft Agreement on cooperation of the parties for maintenance of steady work of enterprises of the concern in 2009 has been prepared.
It was not possible to stabilize financial situation on Avangard Ship-Building Factory, Ltd., and the procedure of bankruptcy has been introduced at the enterprise in November, 2008.
Government of the Republic of Karelia worked on organization of cement production in Karelia. There has been completed consideration of results of economic-geological evaluation of complex use of carbonate strata on the basis of Tikshezero massif (Louhi region) of concentrating factory and cement works within the ore-dressing and processing enterprise. Complex development of the deposit will allow organization of building cement production with a capacity of 1 million tons a year in territory of the republic.
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