Foundry Modernization of OJSC “MAZ” (first stage)

А. Project opportunity description
А1. Project name:
Foundry Modernization of OJSC “MAZ” (first stage)
А1а. Short name:
Foundry modernization
А1b. Full name:
Foundry Modernization of OJSC “MAZ” (first stage)
А1c. Summary description:
Modernization of foundry allows to achieve in 2015 the production of steel
castings in the volume 19,3 thousand tons and iron castings in the volume of 18,6
thousand tons; it will ensure the implementation of modern equipment and
technology which will allow to improve quality and reduce cost of castings
manufacture as well as to increase export potential of Belarus.
А2. Project status:
The technologies of castings production were developed; the production plan
was approved; layout solution of a new production building was preliminary worked
out, the processing equipment specifications were developed and the equipment
purchasing documents are being prepared; the approximate main costs were
specified, a preliminary business-plan is being worked out, the requirements in
production areas were estimated.
А3. Organization involved and their roles:
- OJSC “Minsk Automobile Plant” with 100% government share in the authorized
fund; 2, Socialisticheskaya str. 220021, Minsk – the project implementing
organization
.- Director General Alexander Vassilievich Borovsky, tel. +375(17) 217 96 01;
-Deputy Director General of Technical Development Coordination – Dmitry
Viktorovich Korotkevich, tel. +375(17)217 96 02.
- Ministry of Industry of the Republic of Belarus: 2, Partizanski ave., block 4, 220033
Minsk – public authority, tel.+375(17) 224 61 12.
- Unitary Enterprise “Institute Belpromproyect” – construction project
documentation developer
А4. Project description:
The existing casting production facilities at OJSC “MAZ” does not enable to
provide the required quality. The project provides for the foundry re-equipment in
melting, forming, molding-sand preparation, core sand mixture and thermal treatment
production areas. This will make it possible to catch up with the backlog of
production facilities, significantly improve castings quality and reduce their weight
and machining costs. New technologies and equipment allow to considerably lower
the work content and manufacturing costs. The project stipulates the capacities
creation for high-grade grey cast iron and steel production as well as production of
2
casting for die tooling.
А4а. Project cost, USD million:
54,2
А5. Background /history/overall programe/related or similar
projects:
Background of offer to modernize the foundry shall be the Program of
Development of Automobile Industrial Sector of Belarus for 2007-2010 years,
approved by the Council of Ministers Resolution № 1777 of December18, 2007 and
Resolution of Council of Ministers № 248 of February 22, 2010 “According the
measures to increase of fuel and energy resources efficiency till 2012 year”.
А6. Environmental impact summary:
The technologies intended to minimize the environmental impact shall be
used.
А7. Possible obstacles/problems/risk degree:
The short time for project implementation presupposes a parallel design and
construction works. Due to the introduction of the new foundry equipment it is
necessary to fabricate a full set of pattern equipment for grey cast iron and steel.
А8. Time period for project implementation and pay-back period
(years):
7,2
А9. Project branch:
Automobile manufacturing
В. Capital cost Items
В1. Project physical component:
В2. Capital cost
USD million
Capital costs excluding VAT
(equipment (without customs duties) + erection and
design works)
Total (sum should be equal С2+ D4)
B3. Sub-project by location
54,2
54,2
B4. Capital cost
USD million
С. Capital Resources Available (owner, associates, sponsors etc.)
С1. Resources, grants, investments,
С2. Sum,
equipments, equity/ownership etc.
USD million
D. Required Investment, Deficient Funds
D1 Necessary Financing, Required Type of Financial Participation:
Borrowed funds
3
D2 Source of
finance
D3. Type of Investment
D4. Amount
USD million
External investments
Е. Demand (Users) and Revenues
Е1. Type of Users, Volumes, Pricing, Revenues, Estimated
Profit/Savings
OJSC «МAZ», engineering enterprises
Е2. Financing Sources
Е3. Revenues (Sales)
Cost reduction due to saving the cost of materials,
energy, etc.
7,4 USD million (20102020)
F. Transaction and Operating Costs
F1. Costs Components, Capital Allowance Policy, Industrial
Engineering etc.
F2. Сost item:
F3. Amount
Materiel cost, remuneration of labor, taxes etc.
G. Net Income Value
G1. Net Income Value:
G2. Amount
Energy resources saving
7,4 USD million (20102020)
Н. Project Information Source:
Н1.
This form was completed by (name, appointment): Dmitry
ViktorovichKorotkevich, Deputy Director General of Technical Development
Coordination
Н2. Organization:
Open Joint Stock Company “Minsk Automobile Plant”, Minsk, 2 Socialisticheskaya
str.
Н3. Tel./ Fax/E-mail:
теl. 375 17 217 96 45
Fax. 375 17 217 22 11,
www.maz.com.by
Н4. Date: May, 2010
Н5. Supreme organization:
Ministry of Industry of the Republic of Belarus
4