Industry

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 production. The leading place in technological renewal of industry, production hi-tech production in demand in the external and in the home market belongs to enterprises of engineering industry, shipbuilding and metallurgy.

Despite of deficiency of credit resources, enterprises manage to master new technologies and put products in demand on the market successfully.

Thus, support in formation of a package of orders in 2009 has allowed Petrozavodskmash Joint-Stock Company to accomplish modernization due to purchase of the unique processing equipment to produce new kinds of production. For the first time High pressure drums for heat and power plant have been made and shipped, equipment produced for constructed Novovoronezhsky atomic power station and complete sets of lifting equipment for oil platforms and sea crafts for Norwegian customers were rated high. Samples of containers for storage of firm radioactive waste have taken a successful test.

On results of the meeting of the Head of the Republic of Karelia and Director General of Petrozavodskmash Joint-Stock Company with director of the Russian Federal Atomic Energy Agency held on November 2, 2009, for Petrozavodskmash Joint-Stock Company there has been formed the stock of orders for the atomic industry for the next three years.

Petrozavodskmash Foundry, Ltd., has managed to master the unique technology of alloying Hadfield steel, known for its high impact strength and resistance to abrasion.

Realization of the state contract concluded by the Tractor Factories concern with the Ministry of Industry and Trade of Russia at participation of the Government of Karelia has resulted in presentation of new model of a harvester for timber industry asssembled by Onego Tractor Plant, Ltd., as a pre-production model held in Petrozavodsk on September 11, 2009. In 2009 it was possible to complete industrial equipment of production on the 2nd site of Onego Tractor Plant, Ltd., and to prepare for the batch production of modern logging equipment.

At the support rendered by the Republic of Karelia to Wärtsilä Hardware Plant Joint Stock Complany, in order to expand the assortment of the output of goods and increase in volumes of production including for export, implementation of the project of installation of two high-efficiency draw-benches producing wire with a diameter less than 1.0 mm was completed in December 2009. Therefore, it is expected to reach the 3.8% gain of capacity.

Despite of the intense situation with turnaround means, Onego Ship-Building Factory, Ltd., in 2009 has carried out its contract obligations on construction and shipment of one dry-cargo ship of Karelia type withing the program of modernization of the Russian fleet and two sea crafts of DCV-33 project with the deadweight of 4500 tons.

Government of the republic has addressed to Arthur Chilingarov, famous polar explorer, deputy of the State Duma of the Russian Federation, the first deputy head of the fraction of the United Russia party, with the request to assist in use of capacities of Onego Ship-Building Factory, Ltd., within the framework of the project of revival of the Northern Sea Route.

Due to absence of orders and circulating assets situation at Avangard Ship-Building Factory, Inc., undergoing the procedure of bankruptcy under adverse economic conditions has worsened considerably. Measures taken to search for customers and investors for placing alternative kinds of production had no effect so far. Revival of industrial activity is possible at presence of investors for purchase of property during its sale.

On results of 2009 enterprises comprising the Finnish concern PKC GROUP OYJ have confirmed the status of socially focused organizations which are strictly carrying out functions of responsible tax bearers and employers. At the support of the Government of the Republic of Karelia, despite of significant drop in production, it was possible to avoid employment layoffs at the enterprises.

For organizations producing electric machines and electric equipment, since January 1, 2009 the profit tax rate is lowered to 13.5%. At the support of the Ministry of Labour and Employment of the republic workers of enterprises were tought new professions and improved their skills. Besides, issues concerning customs relations with the state bodies were solved which resulted in development of optimal schemes of passage of customs registration and improvement of other customs procedures together with customs bodies.

Measures taken have allowed to pay wages at the enterprises in due time, to carry out of tax obligations in full, to keep all social programs operating.