As of today, the following actions have been completed as part of the project:
1. Local placement of the mini-factory was approved by the Multiagency Commission for Placement of Production Capacities in Voronezh Region on 10 December 2009;
2. A 2.55 ha land parcel with cadastral number 36:16:5300001:125 intended for placement of production and administration buildings has been identified and allocated on the terms of registered long-term lease. Land Lease Contract No. 215 of 5 July 2010 has been signed;
3. Integrated design of the mini-factory to the requirements of the RF Urban Planning Code has been completed, design documentation has been reviewed, and Construction Permit No. RU36516302-175-12 was received on 3 December 2012;
4. Interface flowchart for projects implemented with government participation/support is being updated. Investment agreement for LLC NPP StroyStal project has been submitted to JSC Sberbank of Russia for review and approval.
5. Seeking government support on the national/regional level, investment project documentation has been drafted and submitted to the Department of Economic Development of Voronezh Region for review by the Expert Board on the Delivery of Voronezh Region Social and Economic Development Strategy;
6. Investment project delivered by LLC NPP StroyStal is strongly focused on social and economic development, innovation and import phase-out in the construction sector of the Central Black Earth Region and the Southern Federal District. The project meets the goals and objectives of the Strategy for the Development of Building Materials and Prefabricated Construction Industry until 2020, which was developed by the Government of the Russian Federation.
Full-scale project of the mini-factory development with total value of 933,760 thsd RUB as of 1Q 2015 presumes production, after attainment of designed capacity, of 88.527 tonnes per year of high-strength A500 and A600 steel rods of three ductility categories, including:
- rebar in the quantity of 11,755.20 tonnes per year, and
- wire-frame products in the quantity of 76,771,80 tonnes per year.
As per the contract, Italian company PROMSKTAR srl was selected as the key manufacturer and supplier of major process equipment for the mini-factory.
1. The project appears relevant in the context of current development, by assignment of the Government of the Russian Federation, of a new regulatory framework for Russian metallurgy and construction sectors, the need for high-quality competitive building materials, and increase of output in solely residential construction sector from 84 mln sqm in 2015 to 140 mln sqm by 2020.
Russian market of reinforcing steel rods totaled 5.5 to 5.7 mln tonnes in 2012, with average growth rate of 6-8% by 2015.
2. Leading design institutes of Voronezh Region have proven technical and economic feasibility of using products of mini-factories in the designed industry-specific construction projects in the near term.
3. The design of mini-factory construction stage 1 was approved by the expert review board of the relevant ministry and was selected for implementation by the Ministry of Regional Development of the Russian Federation (Minutes of 7 March 2014 are attached).
Russia, 396330, Voronezh Region, Novousmansky Area, Volya village, Ilyicha St. 4