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Snezhinsk
Protective multi-layer polyethylene pipes for communication cables
Practical Outcomes of Project Realization

Title

Manufacture of protective multi-layer polyethylene pipes for communication cables.
Objectives

- Master full-scale production of multi-layer polyethylene pipes for laying and upgrade of optical communication networks.

- Start manufacturing pipes competitively for sale to end-users.

- Reach sales volume of £ 120,000 - £150,000 per month.

- To create 35 new jobs in Snezhinsk, including 20 for former employees of VNIITF.
Background

VES Ltd was established to manufacture polyethylene pipes for use as a protective covering for the installation of telecommunications cables. The laying of fibre-optic cables has become big business throughout Russia and is likely to remain so for many years to come. Polyethylene pipes are robust, flexible and temperature resistant; they are particularly suited to the harsh environment to which cable runs are subjected year-round in Russia. SvyazStroi is based in the Urals and is a market leader in telecommunications; it operates throughout Russia and beyond. This company and VES Ltd have come to an arrangement whereby SvyazStroi has promised to make a loan available to VES and supply it with cables suitable for telecommunications. Telecommunications cables are made by companies in St Petersburg and Moscow and most of their business is located in their regions; cables are also imported from abroad but VES expects to be able to produce its cables for about half the cost of imported ones.
Plan

The plan envisages that a suitable building which has already been identified will be completed and fitted out for production; storage facilities for raw materials and finished cables will be completed; a tender will be organised for purchase of the equipment; equipment will be set up and commissioned and staff trained to operate it; licensing and certification will be obtained with the help of SvyazStroi.
Leadership

VES was established in 2004 by a local entrepreneur who has another business in vehicle diagnostics. The entrepreneur has sufficient business experience for this new venture.
Jobs

5 new jobs (of them 3 for former employee of VNIITF) had been created by the end of Q 1, 2011-2012.
Forthcoming activity

Implementation of the project will continue through the following Quarter. CNCP will continue to monitor the company's marketing activities.
Cost

Total cost of the project is £ 404,610.

The DECC's contribution is £ 191,000 (for the purchase of equipment).

£5,250 from VES Ltd for product certification and £117,000 from Single Ltd (associated company) for equipment. Investment of £91,360 by SvyazStroi to finish building and set up production. Customs procedure; Staff training; Licensing and certification.

Beneficiary

VES Ltd, Snezhinsk
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