Pavel Prokudin: Elektromash providing illustrative example of working in crisis

03/01/16 16:14

Pavel Prokudin: Elektromash providing illustrative example of working in crisis

Today the plant is among leaders in production output and sales. The enterprise has already signed $1.5 million-worth contracts for the second quarter of 2016

Tiraspol, 1 March. /Novosti Pridnestrovya/. Today, as part of a working meeting with the director general of JSC Elektromash, the chair of the government visited the enterprise, which is the flagship of the country's machine-building industry.

Elektromash is one of few enterprises in Pridnestrovie which was able to adapt to the global and regional economic crisis. The plant has managed to retain its staff and some market outlets.

«These are chiefly big energy, oil and gas, and mining companies in the Russian Federation. 95% of our products go to the Russian market. Unfortunately, our sales in the Ukrainian market have been suspended due to objective reasons. Our customers are from the Luhansk and Donetsk regions and they do not work now for well-known reasons," said Elektromash director general Vladimir Trandasir.

In the meantime, with a number of contracts signed with Kazakhstan in 2015, the company's management is actively seeking to expand its Asian markets. And just two days ago a batch of finished products was shipped to our Kazakh partners. Among the plant's partners are companies from New Guinea and Mongolia.

The plant is continuing to work despite all obstacles, the devaluation of the national currency of its major partner, problems with border crossing and the lack of operating assets, «washed away» in the difficult 2015. Customers are reluctant to prepay and often extend final payment terms. Nevertheless, Elektromash is among leaders today in production output and sales. A feasible plan has been worked out for the next half a year, and $1.5 million-worth contracts have been concluded for the second quarter of thus year

As the prime minister noted, the plant's shops are in order, hi-tech products are on the assembly line, unique equipment, some items of which have no analogues within a thousand kilometres, has been preserved and enhanced. In addition, the plant actively employs young specialists.

It has turned out that now representatives of the Russian oil transportation monopoly Transneft, which has long been a close partner of Elektomash, are visiting the plant

«They can't but admire as such enterprises have become rare in the ex-USSR countries. It is our luck to have such a plant in our republic. This means that, in spite of difficult circumstances, if the management wants to succeed, you can do it even in the crisis," commented Pavel Prokudin.

Last year Electromash asked for government assistance for the first time. And this year the plant has been receiving the assistance as well.

«It includes reduced tariffs on energy products. However, we pay profit taxes in full. We haven't asked for a profit tax benefit so far. We hope that with our government's assistance, with our authorities' assistance we will be able not only to preserve, but also to develop our enterprise. This is because our products are in demand. Our task is to survive this hard time with joint efforts and preserve our main assets — our staff and market outlets," said the director general.

Part of Elektromash shares is in the state's possession, but this is not a decisive factor for granting state assistance, reports the government's press service. According to Pavel Prokudin, assistance is given to all enterprises that are in need of it, regardless of property forms.

«The whole industrial complex requires assistance to survive 2016 and the beginning of 2017. Then the global economy, according to all forecasts, will get into its stride. And now we must lend a shoulder to our enterprises, which will be repaid a hundredfold later," concluded the chair of the government.

 

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