Investment Offer. I. General information about the project

Transcription

1 Investment Offer I. General information about the project 1. Project name: "Development of the manufacture in order to develop new types of cable products and Ropes of wires " 2. Project branch: The Ministry of Industry. 3. Project location: Sovetskaya ul, 15, , Shchuchin, Grodnenskaya obl, Belarus. 4. Project description (the essence of the investment project, prerequisites, goals, what is expected from investor, why can the project be of interest to investor) The aim realized by JSC "Shchuchin plant" Avtoprovod "project is the development of new for Belarus processing technologies and production of silicone rubber, on the basis of the - production of fire-resistant cables (power cables, installation, monitoring and control cables fire protection), as well as the modernization and renewal of existing equipment in order to increase productivity, improve working conditions, the quality of products. The company during the implementation of plans to start mass production of new cable products. These products are export-oriented and will be sold abroad. Most planned for the development of cable products in the Republic of Belarus has not made. 5. Degree of the project readiness (availability of business plan, feasibility study, marketing research or other preparatory work/studies carried out (in progress) availability of business plan (The business plan agreed with the management company 09/28/2015, the Ministry of Industry RB- 09/03/2015) II. Information about the project initiator 1. Organization full name: JSC "Shchuchin plant "Avtoprovod" 2. Registration date: Authorized fund structure, %: Legal entities: Share - state ownership form 75, private ownership form 9,5703 Individuals 15,4296

2 III. Description of the market of the product intended for manufacture A. Description of the product intended for manufacture: 1. The company during the implementation of plans to develop mass production of new cable products: - Fire resistant cables for fire protection systems. Cables are intended for group laying in systems of fire protection, fire alarm, warning and evacuation in case of fire, emergency lighting on escape routes, emergency ventilation and smoke protection, automatic fire fighting, and other communication systems, monitoring and control, which must remain performance under fire conditions). - Flame resistant installation cables and cables for monitoring and control. The cables are designed to transmit signals to the monitoring equipment is used for remote control of the executive management mechanisms for interinstrument connections at voltages up to 600 V AC up to 400 Hz or up to 1000 V DC, for cable management and power lines functioning equipment in case of fire. - Fire-resistant power cables. Cables are designed for cable lines of the security system equipment supply AC, electrical wiring circuits of fire safety systems (fire alarm circuits, power supply fire fighting pumps, lighting, emergency exits and escape routes, smoke extraction systems and ventilation, evacuation elevators), including in hazardous zones of all classes but explosive B1 zones for wirings in operating departments of hospitals, emergency power supply circuits and equipment (pantographs), which operate in case of fire. - Fire-resistant control cables. Cables are designed for fixed connection to electric devices for alternating voltage up to 660V and 100Hz or DC voltage up to 1000, for the functioning of cable lines in case of fire - Power and control cables fire-resistant insulation of the polymer compositions do not contain halogens. They are used to ensure maximum fire protection. The absence of halogencontaining materials increases the protection of people from being poisoned by combustion products. Small smoke provides a reasonable visibility on evacuation routes. Provided reliable operation of electronic equipment in a fire, because the products have dymogazovydeleniya low corrosivity. When exposed to flame is allocated a very small amount of smoke that provides satisfactory visibility in the fire zone, facilitates the search for the source of ignition and activities for fire suppression - High heat-resistant cables with operating temperatures up to 180 C, used for connecting a variety of devices exposed to elevated temperatures; - Cables with plastic insulation and a protective sheath for the field of communication; - Wire sapper. Copper conductors, polyethylene insulation designed to transmit pulses of DC voltage up to 1000 V or AC voltage up to 380 V 50 Hz - Cables management; - Wires for automotive vehicles with insulation resistant to heat up to 200 C; - Harnesses for agricultural, automotive and motorcycle equipment. Will be developed line of products, depending on customer requirements, expand a number of different sized, a number of climatic performance. 2. main consumers: Russia, Belarus, Ukraine, Czech. The main customers are real estate developers, manufacturers of wire harnesses. 3. main competitors (producers of similar product performance goods): Main competitors: In Russia - "Pskovcable", "Podolskcable", "Electocable", "Saranskcable", "Samara Cable Company", "Kavkazcable", Chuvashcable", "Kirskcable", "Kamcable", "Ufimcable", "Agrocable", "Smolensk cable plant", "Cable plant "Alyur", "Oryol cable plant". In Ukraine - "Ukrcable" (Kiev), "Yuzhcable" (Kharkov), "Berdyansk cable plant" (Berdyansk), "Odescable" (Odessa), "KATEH" (Kiev), "Kamenets-Podolsk cable plant" (Kamenets-Podolsk)..

3 B. Domestic market description 1. current market capacity (over the latest reporting period) ,7 mln USD 2. prospective domestic market share: 20 % 3. strategy for operating in the domestic market: lower prices better product quality better service state support (protection from import, guaranteed state public purchases and other support) other (specify) 4. state regulation (price regulation, licensing of the activities etc.):. 5. return on sales (%): 4.3 (in 2015 year); 6. market concentration degree (approximate total market share of five largest market players, %):. 7. other (specify):. C. External market description 1. Estimated sales volume distribution by core regions, %: EEU countries Incl. Belarus market EU countries Other countries (Eurasian economic union) Does the company have experience in exporting to these countries: yes; no 3. Do other Belarusian producers export these products to the main target markets? yes; no IV. Description of available infrastructure Railways and motor drive ways: company s own branch railway Belarusian Railway line (distance from the site, km): 7 state motor roads (distance, km): 1 other roads with improved surface (distance, km): Communications: electricity network (voltage:, distance, km: ) water pipeline gas pipeline Land plot and manufacturing facilities: land plot availability (area: 8,1243gectares, purpose of use:.) presence of constructions (area: m2, purpose of use: Manufacturing shops) Other infrastructure: warehouses, logistics terminals (area:, description: ) possibility of production expansion and installation of additional production capacities possibility of construction of the necessary infrastructure via state budgetary financing (description: ) Other (specify):

4 V. Key advantages of the project Short description of each is expected: developed brand:. profiled staff:. supply chain of raw materials and components:. (commodity) distribution network:. guaranteed volume of orders:. presence of valid patents, licenses, permits:. provision of benefits within the project implementation:. core partners:. other (specify):... VI. Project financing A. Total investment amount: 3.57 mln USD select B. Investment sources select: Own resources Investor s resources State financing Grants Long-term loans Short-term loans Other (specify): Source С. Investment resources allocation: research and development infrastructure development construction purchase of real estate purchase of equipment, technologies, licenses preparation of production working capital financing other (specify): Total: Amount 0.62 mln USD 2.95 mln USD 3.57 mln USD

5 D. Form of investor participation in the project: Forms of investor participation Contribution to the authorized fund of a newly established enterprise Purchase of shares (share in the authorized fund) of the existent enterprise Purchase of the enterprise as an asset complex Additional issue of shares for selling to investor Other (specify): 75% of stocks of the enterprise belong to JSC «BATE» managing company of the Holding «Automotive components». The form of participation of the investor in the project will be defined as a result of negotiations Investor s share in authorized fund under the intended participation form, % E. Preliminary indicators of the project efficiency Indicator Value Annual revenue (select, excl. of VAT, after reaching the project capacity) 44 mln USD Period for reaching the project capacity, years 0.5 Pay-back period, years 5 Dynamic pay-back period, years 5 NPV *, select 0,234 mln USD IRR *, % 27,7 Discount rate, % 9 * IRR and NPV are indicated as of year 2020 of the project implementation. VII. Contact information Contact information about executing officer (name, position): Gennady Zenkevich, Chief engineer Phone: +375(1514)28268 mob.: Fax: +375(1514) gzenkevich@mail.ru Website: Date of the investment offer preparation: