Novosibirsk's specific regional features tell, naturally, on local business character. The absence of natural resources of any importance put the oblast in comparatively less favorable position than their neighbors. Among the projects and business-plans submitted to the Center very few are related to primary materials extraction and processing. These are, say, the projects of ornamental stones processing.
Business activity is expanding, according to the ESC, in food production. A considerable share of the proposals listed come from the services sector (motor transport, communication, education). In the near future, the Center intends to draw proposals from construction companies and related businesses.
Novosibirsk oblast is famed for its high scientific and technical potential. This reputation has been formed by the city's three large academies, its dozens of higher education institutions and by its huge chunk of the nation's military-industrial complex. This potential has enthused many of those who have submitted plans to the ESC.
Listed below (no priorities stressed as for their efficiency or investments requirements) are some examples of investment projects from the list of business-plans accepted by the Center. All the projects were presented by Novosibirsk enterprises.
1. ROPAT company: the project of manufacturing of submarine hydrohammers (intended for sea shelf operations during underwater extraction of gas and oil, or sea berths building). The project rests upon the company's own innovations which are safeguarded with world-wide patents. Its efficiency is secured with low costs compared to the only other producer of similar hammers, in the world, FERROSTAAL AG (Germany). The company has manufactured a working model of the hammer and is currently constructing a test bench for its international certification (the activities were financed by GazProm company, Russia). Investments required amount to $15 million to $7 million, - depending on the model of the hammer and on the scale of production.
ROPAT company also proposes the production of pile-drive hammers, elaborated on the basis of their own know-how and inventions. The investment required will vary from $25 million to $7 million - depending on the scale of production.
Diverse forms of cooperation with partners are possible - from direct financing to a joint venture, or production rights acquirement. This year the project of hydrohammers was presented at international exhibitions and it attracted considerable interest from potential foreign investors and customers.
2. Novosibirsk Poultry Combine company (NPC). The project of modernization of meat and poultry foodstuffs production (sausages, smoked products, delicacies, prepared foods). The combine is one of the leading enterprises in Novosibirsk and in the oblast. The factory is of medium size with a staff of 300. NPC is comprised of high class specialists in this field and is capable of technical restructuring and personnel retraining within the shortest possible time, and of manufacturing products competitive in both domestic and foreign markets. Recoupment of investment would be no more than 18 months. There is already a preliminary agreement with a German company to provide equipment. Investment required: approximately $3.5 million. Up to 30% of the company's shares are available to investors; non-capital forms of investment will also be considered.
3. Mramor (Marble) company. Project: marble extraction and processing. The marble deposit is considered one of the best and most beautiful. It is strong and easily transportable. At an international seminar, held by BDP in St.Petersburg, the company created a great deal of interest. Moreover, Mramor has signed an agreement with a Danish firm to lease equipment; under the terms of this agreement the Danish company received a 10% share in the project (the investments required is $1.5 million).
4. Prodeck company. Project of production of ornamental facing tiles (granite) at a deposit in Altai. Investments required amount to $5 million. Various forms of cooperation with potential investors are invited.
5. Block company. Project: providing services to motorists, traveling via Novosibirsk. Building of 12 service-centers (with imported equipment) on the outskirts of the city is proposed by the project. Investments required are estimated as $2.3 million. The project is supported by the oblast administration and is now at a stage of initial examination - with preliminary agreements on equipment delivery.
6. Maxi company. Project: manufacturing of environmental control devices for automotive vehicles and power station exhausts, for gas pipe-line leakages. The devices have no counterparts abroad. Investment required: (minimal version) $20 thousand. The company has recently got some modest financing from the oblast Environment committee (which permitted the manufacture of two prototypes). There are possibilities for considerable expansion.
7. ImSib company offers services of prophilaxis, diagnostics and treatment of human immunopathologies. The company comprises of world class experts in immunopathology. The services market spreads at least all over population of Novosibirsk and of the oblast (both individual and group customers). Investment amounting to $170 thousand are needed for modern equipment. Various types of financing will be considered.
8. Excimp Flora company. Project: production of pharmaceuticals (ointments, oil preparations, suspensions - about 10 groups of preparations altogether), from plant raw materials. Similar production is already running in the republic of Bashkortostan (European Russia). The company has expanded its operations in the Novosibirsk market. There are solid indications that some of the world's largest pharmaceutical firms wish to purchase the preparations in question. To complete the project, the company needs investments amounting to $60 thousand; modes of financing - from direct loan to share-holding in the company.
9. RIP NTP company. Project: supplementary equipping of a small non-ferrous metals plant (mostly aluminium alloys) salvaged from various sources, the largest of which is large decommissioned missile bodies - and other military machinery. The project is supported by the oblast administration; such an activity is encouraged with a series of tax privileges. The market is quite well studied. Investments requirement - $200 thousand. Various modes of financing are acceptable: a loan, a share in nominal capital, etc.
The ESC deals with other similar projects: the utilization of warships (up to 300 units), of naval armaments guns, and so on. The proposals are supported with corresponding legal permissions on the activity in question: the market and attendant circumstances have been studied.
10. Technical Inventions in Ecology company. Project: production of nutrition correction food (a la NutriCon). The food has been designed by scientists of Siberian branch of Russian Academy of Science. It may become the ecological and physiological alternative to the well known food, such as HerbaLife, SlimFax and others. Corresponding manufacturing licenses have been granted. The food is produced now on a small scale at Novosibirsk confectioneries. The expansion of production requires $50 thousand of investment.
Would you consider taking part in some of these projects or projects like them? The Enterprise Services Center is capable of approaching, any enterprise in Novosibirsk, in the oblast or in Siberian region on your behalf. The Center can be helpful in establishing business contacts, in selection of partners (investments, joint activity, etc.) and general market advice.