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Status of Productive Industry
Mining Complex
The mining complex of Karelia in 2004 developed according to the republican target program Development of bowels and Development of the Mining Complex of the Republic of Karelia for 2000-2002-2010. The Government of the RK continued financing the subprogramme Geological Studying of Bowels and Reproduction of the Mineral and Raw-Material Base of Karelia, on which purposes 12,2 million rbls. was allotted from budget of the RK.
The mining complex unites 45 operating enterprises, almost as much is in developmental stage. The volume of manufacture of nonmetallic materials during the year has grown 7% and has made 5,8 million cube. The m, volume of manufacture of rubble in republic has made 4,5 million cubic meters (111.1% to 2003). The basic consumers of building nonmetallic materials of the enterprises of Karelia are large building corporations of Moscow, and Moscow and Leningrad areas. Due to increasing needs of the given regions for high-quality rubble and gravel, the mining industry of the republic receives significant investments annually. Large investment projects are under implementation. Within 2004 a number of large enterprises manufacturing rubble and gravel has been put into operation in Karelia: Sortavalsky Grinding-Sorting Factory, Inc., Lobskoye-5, Ltd., , Pudozh Quarry, Ltd., приблизились к уровню проектной мощности Shokshinsky Quarry, Ltd., and Raikonkoski Quarry (Karelprirodresurs , Ltd.).
The share of enterprises of ferrous metallurgy in total amount of industrial production of the RK which in 2004 has achieved 17.2% (13.1% in 2003) grows. Produced commodity output cost has made 8842 million roubles (169.3% to the level of 2003) at value of the index of physical volume of 108.7%. Ferrous Metallurgy of Karelia is represented by two enterprises: Karelsky Okatysh (Karelia Iron-Ore Pellets), Inc., and Wärtsilä Hardware Plant Close Corporation that operate and develop successfully.
In 2004 Karelsky Okatysh, Inc., continued preparation for development of Korpagangsky iron-ore deposit, and exploitation the site Severny-2 of Kostomukshky deposit has been started. The volume of manufacture of pellets during the year has grown 8.5 % and has made 7,6 million tons, the volume of commodity output has grown 64%. The measures taken by the management and proprietors of the enterprise on the manufacture re-structuring and cost reduction, have allowed to increase profit considerably and to become one of the largest tax bearers in Karelia on the given parameter.
Wärtsilä Hardware Plant Close Corporation, being a part of Mechel Steel Group, Inc., Holding in 2004 has made 56,7 thousand tons of hardware (109.7% to the level of 2003), manufacture of commodity output has fallen 49.4%. Despite of a fire taken place in December, the enterprise plans both to restore its manufacture, and to increase its volumes.
Nonferrous metallurgy in Karelia is presented by Nadvoitsky Aluminium Factory (Branch of NAZ-SUAL). The enterprise uses its capacities completely (100%), the volume of production has made 101% to the level of 2003. The enterprise is under reconstruction that will allow to lower aluminium manufacture expenses, and increase volumes of manufacture. During a few recent years the factory has been consudered stable.
Commodity output on the branch of construction materials as a whole in 2004 has grown 30.4% compared to 2003 having made 1713 mln.rbls. Despite of growth of volumes of extraction of rubble and gravel, manufacture of brick (122.1%) and building panels (growth 1.5 times), the index of physical volume has made 93.2%. The total of work of branch was influenced with reduction in manufacture of ferro-concrete products (93.2%). Volumes of extraction of block stone and manufacture of facing products were reduced as well. A principal cause of decrease is absence of stable commodity markets owing to the increased competition from the Chinese suppliers of similar production. In 2005 revival of demand for production of the Russian manufacturers is expected.
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