A.  Project Opportunity Description:

A1.  Project Name:

  à. Short name:

 Organization of viscose staple fiber production.

  b. Full name:

 Organization of viscose staple fiber production at R.U.E. “S.P.A.”Khimvolokno”

  c. Summary description:

The aim of the project is to increase efficiency of the viscose production, and to raise competitive capacity of products at the expense of organization of viscose staple fiber production.

  À2. Progress Status:

On realization of the project it is planned to utilize nonoperating technological equipment and production areas of  the existing viscose cord fabric production.
For realization of the project it is necessary: to prepare expediency for the investment, to elaborate designing estimates, to purchase the equipment.

  À3. Organizations involved and their roles:

(à) Republican  Unitary Enterprise “Svetlogorsk Production Amalgamation «Khimvolokno», Zavodskaya str.5,

 Svetlogorsk, Gomel Region, Republic of Belarus - an initiator of the project

Vasiliy V. Kostyukevich, Director General

Tel. (02342) 25470

Fax (02342) 28800

E-mail: sohim@sohim.by

Internet: sohim.by

b) Belarusian State Petroleum and Chemicals Concern „Belneftekhim“  - superior organization
         73 Dzerzhinskogo Ave., Minsk 220116, Republic of Belarus.

  À4. Project Description:

The focus of the project lies in reconstruction of the existing viscose production with the purpose of organization of production capacity 36 thousand tons per year. The realization of the project will allow to set in motion unused technological equipment and production areas of viscose yarn production.

  A5.  Background / history / overall programme / related or similar projects:

 R.U.E. “S.P.A.“Khimvolokno” consists of:

·         Polyester Textile Yarns Plant;

·         Artificial Fiber Plant;

The main productions of R.U.E. “S.P.A. “Khimvolokno” are polyester textile yarns, viscose industrial yarns, viscose cord fabrics, polymer and carbon fiber materials, industrial yarns and fibers «Arselon», nonwoven thermally bonded materials.

  A6.  Environmental impact summary:

       While realizing the project it is supposed that actual emissions into the air and water basin will be brought in line with the accepted regulatory values.
       In order to increase effectiveness of air-gas treatment it is planned to obtain complete carbon disulfide recovery plant with the possibility to return carbon disulfide into the production in the volume of no less than 40% of the utilized in the process of viscose production.  

  A7.  Possible obstacles/ problems/ risk assessment:

Risk assessment of the project is medium.
 RUE “SPA “Khimvolokno” is a large enterprise with the stable production; it has stable connections both with the
suppliers and with the consumers.

  A8.  Term of realization / term of recoupment (years):

  Term of realization: 2009 -2011.
  Term of recoupment:  8, 9 years.

  A9.  Project’s branch:

 Petroleum refining and chemical branch

B.  Capital Cost Items (total investments necessary for realization of the project).

B1. Project physical components

B2. Capital cost (thousand EUR)

  Purchase of manufacturing equipment [including contract supervision and commissioning]

  34 879,47

  Building and assembly jobs

 5 226,34

 Customs fees

  52,32

  VAT on investment

6 287,72

  Total  (VAT incl.)

  46 445,86

C.  Capital Resources Available from Initiators of the project :

 Ñ1. Resources

Ñ2. Amount, thousand EUR

Internal funds

11 566,40

D.  Required Financial Assistance:

D1.  Financing gaps, type of financial assistance required:

  34 879,47 - Crediting, Direct investments, Loan

D2.  Sources of finance

D3. Type of investment

D4. Amount (thousand EUR)

Borrowed funds and finances 

  Credit, Foreign direct investments

 34 879,47

E.  Demand (users) and revenues:

E1.  Type of users/ markets, volumes, pricing, revenues, quantifiable benefits/ savings:

 The forecasting marketing outlets for the projected output.
     The domestic market of the Republic of Belarus is estimated at 2 000 tons. The principal consumers are enterprises-members of Concern “Bellegprom” (Belarusian State Light Industry Goods Production and Sales Concern:  ÃÐÓÏÏ «Ãðîíèòåêñ», ã. Ãðîäíî; ÎÀÎ «Êàìâîëü», ÎÀÎ «Ñóêíî», ÎÀÎ « ÊÏÒÔ «Ðó÷àéêà», ã. Êîáðèí; ÎÀÎ «Ñëîíèìñêàÿ ÊÏÔ»).  

     The market of Russian Federation is estimated at 10 000 tons. The principal consumers are spinning and weaving mills.
     It is planned to  deliver up to 30 000 tons to the markets of Western and Eastern Europe and Turkey.
     Price movement for viscose staple fiber demonstrates variation in prices from 2.00 $/kg to 2,90 $/kg.

E2.  Revenues (Sales)

E3. Amount (thousand EUR)

  Total:

68 885,06

F.  Operating and Maintenance Costs:

F1.  Cost components, strategies for cost recovery, operating organizations, subsidies, etc.:

 The necessary engineering utilities and power sources are available at RUE “SPA “Khimvolokno” for the production
placing. Additional land occupation is not required.

F2. Cost Item

F3. Amount (thousand EUR)

Raw materials, materials

40 394,80

Energy resources

9 180,93

Personnel expenses

561,89

Amortization

2 690,59

Others

4 135,87

TOTAL production costs on realized production

56 964,08

G.  Net Income Value:

G1.  Revenues E2 minus operating cost F2

G2. Amount,  (thousand EUR)

Sales income

11 920,98

G1. Net Income Value

G2. Amount (thousand EUR)

  Net profit:

6 885,56

H.  Project information source:

H1.  This form was completed by:

 Krapiva Sergey Olegovich, acting for the chief  of Prospective Development Department

H2.  Organisation (address):

 Republican Unitarian Enterprise Svetlogorck production amalgamation “Khimvolokno”

247400, Republic of Belarus, Gomel region, Svetlogorsk, Zavodskaya str. 5

H3.  Òel/Fax/E-mail:

 Tel. (02342) 95823,  Fax (02342) 94877,  E-mail:opr@sohim.by   

H4.  Date:

  25 September, 2009