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Ozersk
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Modernisation of plant for Large Equipment Production
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Title |
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Modernisation of plant for Large Equipment Production (Equipment for Food and Drink Industry).
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Objectives |
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- To support plant modernization and production process refinement for the manufacturing of
large equipment for the food-processing industry in Ozersk.
- To create 20 new jobs in Ozersk, including 12 for former employees of FSUE PO "Mayak".
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Background |
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ZHTO manufactures equipment for the food processing industry and other customers. It was set up in
1991 by the current General Director and since 1997 has produced a range of mild and stainless steel
storage and mixing vessels mainly for the food and drink industry. The plant has been engaged in
manufacturing large equipment for wine, spirit-alcohol, brewing as well as dairy, fats, and baking
activities for more than 15 years. The list of products manufactured includes measuring equipment,
vertical and horizontal tanks with capacities from 10 to 250,000 litres, facilities with mixing
devices, tubular and bulk pasteurizers, water conditioning equipment, including ionite, coal, sand
filters. However, the current equipment fails to meet import analogues in quality and, due to the
additional costs, cannot compete on price. A special problem relates to the quality of the equipment
surface, since 100 % of the equipment is made of stainless steel and the requirements for surface
quality are very high. By 2002 the company had become a leading manufacturer of food processing
equipment in the South Urals but in 2005 it was forced to relocate. The move to new premises proved
expensive and for a while the company ceased production. Since 2006 it has been rebuilding its
market position; in 2008 its turnover was £ 888,000 and it employed 26 staff. The product range
includes measuring equipment, vertical and horizontal tanks with capacities from 10 up to 250,000
litres, mixing equipment, tubular and bulk pasteurizers and water conditioning equipment. In 2000
the company diversified into manufacturing gas separators, oil-gas separators, and filters for the
oil industry. In mid-2009 the company was awarded ISO 9001 and ISO 2009 quality certificates.
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Leadership |
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The management team of the company is technically well qualified and has considerable business
experience. The General Director, Technical Director, and Production Director are all qualified
mechanical engineers and have nearly seventy years of manufacturing experience between them.
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Plan |
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Equipment in this sector is made to individual specifications, which means that a design office is
needed. The project aims to support plant modernization and production process refinement for the
manufacturing of large equipment for the food-processing industry. The project will help the company
to improve product quality, reduce manufacturing costs, and extend its product range. The company's
design facilities will be upgraded by acquiring a CAD facility and more sophisticated computer
controlled machines will be purchased to cut, bend and weld stainless steel sheet.
In particular this will allow the company to produce vessels with elliptical and conical bases. The
company also plans to invest in non-destructive testing equipment to check weld quality. The plan
proposes equipment purchase over different time periods, equipment installation and commissioning
and training of staff before start up.
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Jobs |
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21 new jobs (of them 9 for former employee of FSUE PA MAYAK) had been created by the end of Q 1, 2011-2012.
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Cost |
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Total cost of the project is £ 341,722. The DECC's contribution is £ 150,000.
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Beneficiary |
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JSC "Plant for Chemical- Processing Facilities" (ZHTO), Ozersk
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