Construction of a plant for granitecrete in the Baltic States

Project description

Invited to participate in investing the construction of a modern plant for the manufacture of products from Scandinavian granites.

The project is expected on the territory of the European Union, in Estonia.

The initiator of this project is genitourinarya the company is located in the North - East of Estonia, in the Russian-speaking industrial region. Currently capacity of the existing plant for the production of articles of Scandinavian granites, are unable to meet the existing and growing demand for them. Was a large-scale marketing research of potential market for granite products. The results of these studies adopted a decision on expediency of construction of a new production of granite products. The first phase of construction involves the operation of the plant for the production and sale of granite polished and heat-treated slabs of up to 8, 000 m2 per month, worth at least 600-700 thousand euros. The main consumers of these products are factories for the manufacture of granite sets for kitchen, manufacture of articles of exterior and interior finishing of office and residential buildings, entertainment, bath and Spa complexes, hotels and spas.

For the implementation of this project requires investments in the amount of 3, 5 million euros. This can be a loan for 5 - 6 years or the equity investor's participation in this project in the amount of 85%.

For the successful implementation of this project there are all objective preconditions:

— Existing worldwide sustainable demand for products from the Swedish, Norwegian and Finnish granites. The quality of these Granites is well established.

— Average salary level of personnel in Estonia is around 750 euros, which is much lower than in countries of Northern Europe. And this imbalance will level off for a long time. In Estonia there is preferential taxation of enterprises. Relatively inexpensive energy and the use in the draft scheme of non-waste production, that is, 100% utilization of the purchased raw materials. Thus, the production costs per unit of output will be comparable with major competitors, the Chinese manufacturers. The required volumes and product quality will enable to provide the most modern Italian and Finnish equipment, which has already been selected to equip the plant.

Industrial site for construction occupies a very favorable location. The site is on the route Tallinn – St. Petersburg. To Tallinn -156 km To the border with Russia — 56 km; to St. Petersburg – 170 km. the Main sources of raw materials and the markets of Northern Europe and the Baltic States are within a 500 kilometer distance (Sweden, Finland, Norway). The main markets of Russia, such as Moscow and St. Petersburg are within a 800 kilometer distance. The markets of Central and Eastern Europe available for fast delivery vehicles. Access to other markets, with Maritime transport. The nearest sea port is at a distance of 30 km from the plant.

— She industrial area is very convenient for the development of production. It is private property of the owners of the existing plant. Total area of site — 3, 55 ha. Electricity – on-site private substation AND 800 KVA -1250; Gas, the average pressure — Heat capacity up to 5 MW/h; Water, Sewerage: connection to city sewers, at present, to 50 m3/h, but possibly more.

— Currently there is an opportunity to buy equipment and to perform construction work in a supportive, low prices.

According to the research and developed detailed business plan along with financial plan project investment and construction. According to fin. Plan - IRR / GNI (Internal rate of return) is 39%, the Net present value NVP by the end of 2019. will be 20 million euros. Sumanatissa profit by 2019 – 7, 0 million euros.

If You are interested in this proposal, we are ready to provide any additional information on this project. Make suggestions for any possible options for mutually beneficial cooperation. We give advice on the legal and international aspects of a possible interaction.

Sincerely, Gennady Borisov