The creation of a technological complex for the development and production of advanced decorative finishing materials in Primorsky Krai

Project description

Currently our company is developing a large-scale project – implementation of building and "creating a technological complex for the development and production of advanced decorative finishing materials in the Primorsky territory" in the industrial area of the city of Spassk-far. For the purposes of the project jointly with partners-investors plan to open a new company "Free Synthesis of Modern Technology" registered as a resident of Free port of Vladivostok.

Decorative panels are developed by European technologies fully meet the environmental requirements and have universal characteristics: water resistance, soundproofing, do not support combustion. Decorative panels are used for interior decoration of premises, and their quality meets the highest standards and requirements to construction materials.

Products will meet the needs of all age groups and meet the advanced quality standards of manufacturing technology and use of materials.

The project envisages construction of:

• Industrial building with total area of 18,000 sq. m.
• office 4-storey building with a total area of 4000 sq. m.
• administrative building with total area of 4000 sq. m.
• building with boxes for vehicles, dispatching, weight control,
• boiler, feed-through,
• as well as device driveways, turning playgrounds, landscaping and grounds open storage.

Construction area of 3, 5 Ha.

The planned construction time of the plant is 18 months, "turnkey", including the commissioning of buildings, expertise, equipment installation and commissioning work.The planned timing of the serial production of products, including staff training, further 3 months. The planned timing of the start of profit — 21 months from start of construction.

In accordance with the project, the plant capacity is designed for 15 production lines and a production of 12000 tons per year. At the moment there is interest of the Federal trading network for the implementation of the panels in the shops from 30 to 50% of production (6,000 tons). The remaining volume, our company is planning to implement wholesale product sales through dealerships (agents) and wholesale stores, located in the Primorsky Krai, Khabarovsk Krai, Amur region, Chita region, Buryatia.

Starting in 2015, we researched the markets of China, where the product is in high demand and meetings were held in all major factories-manufacturers of China and negotiations with manufacturers. We have established business partnerships with the owners and managers of a network of factories in the southern province of China. So, we came to the agreement on technological assistance from our seaside complex with the provision of technologies of production, with the departure of the Chinese experts to our plant for pre-commissioning and product release in serial production.

Competitors: No

Market research showed the absence of similar products on the market of finishing materials in Russia, which gives a further advantage for the stable sales of products, expanding the market and deepening of the ability to improve export sales of products on the market of the CIS countries of the Commonwealth.

For the purposes of the implementation of the project of construction of the technological complex we have prepared: 1. Land (for adequate logistics, electro/vodopoglashchenie etc.) 2. Business plan (initial calculations). 3. The package of documents for opening of the joint, OOO. 4. The package of documents for registration as a resident of Free port of Vladivostok. 5.Agreed power electricity/sanitation. 6. Consulted experts agreed on a list of technological equipment and equipment of the factory and administrative buildings. 7. Developed and coordinated the list of feedstock for the manufacture of composite decorative product. Coordinated domestic suppliers of main components of raw materials for production. 8. Prepared a report on the employment of the employee (permanent and shift work). 9. Investigated possibilities of the markets of sales of decorative panels and products in the Primorsky Krai, far East, Russia. Pre-agreed upon wholesale sales of lots in the amount of monthly production.

Brief information about the financial performance

The amount of attracted investment in the project is 853.700.000 rublesand describes the procedure of financing of the project in 2 main phases (figures estimated).

Funds raised will be used for the construction ofthe technological complex for the development and production of advanced composite decorative finishing materials, and equipment, working capital and organization of sales.

Our proposal is to attract interested businesses and/or individuals as co-investors of the project for financing the construction in set proportions at any stage. The result of this proposal would be the allocation of investment activity between the project participants.

We are ready to consider joining the investor's share of the company and the signing of a specific investment contract for financing of the project or, taking into account the order of construction.

The planned annual profit 513.752.725 rubles.

The payback period is 5 years.