Formation of Industry Program

The Investment Program is formed on the basis of the following:

1. Determination of market demand. Based on the existing demand and supply of products, assessment of prospects, characteristic of products, its competitiveness in the market, existing potential of the sector, information of competitors, product quality.
2. Material resources. Subject to availability of raw material base, raw material quality and conformity to the process requirements, explored reserves, materials, components and provision of energy resources.
3. Optimum project location. Subject to remoteness from raw material and finished product sale markets, transportation routes, assessment of production and social infrastructure, specific features of socio-economical development of region – advantages and restrictions, ecology and environmental impact.
4. Evaluation of costs. Subject to assessment of production capacity with development by years, characteristics of supplied equipment, its reliability and warranties of supplier, advantages and disadvantages, conformity of products to the international standards, prospects of localization with local raw materials and labor resources.
5. Financial evaluation. Investment costs, mechanism and sources of financing, efficiency and payback, timeliness of repayment of borrowed funds, advantage of adopted option and alternative, etc.

The Company conducts technical policy for renovation of technologies, reconstruction and modernization of production facilities, reprofiling in accordance with changing market condition, development of new kind of products.

For all projects, prior to implementation, the Company shall conduct:

• marketing, product competitiveness, analysis of information about competitors;
• availability of raw materials basis and correspondence of it to the requirements of technology, explored reserves of raw materials, components, provision of energy resources;
• optimum project location subject to remoteness from raw material and finished product sale markets, transportation routes, etc.
• analysis of equipment suppliers, evaluation of cost, quality, reliability, operational costs of supplied equipment;
• investment costs, sources of funding, efficiency and payback, evaluation of alternative options, decision making.