SAMARA e-mail: [email protected] www.strommashina.com 2010 ABOUT STROMMASHINA PRODUCTION COMPLEX CONTENTS 1. LOCATION AND LAND CATEGORY ............................................................................................................. 2 3. PRODUCTION SITE LAYOUT ....................................................................................................................... 3 4. PRESENT USE ............................................................................................................................................. 4 5. RESOURCES AND UTILITIES ....................................................................................................................... 6 6. ADDITIONAL INFORMATION ..................................................................................................................... 6 7. REGION IN BRIEF ....................................................................................................................................... 6 8. ABOUT SAMARA RIVER PORT .................................................................................................................... 9 9. SAMARA – THE REGION'S ADMINISTRATIVE CENTER ............................................................................. 12 10. CONTACT INFORMATION ...................................................................................................................... 12 APPENDIX 1. MANUFACTURING ENTERPRISE MASTER FILE. ...................................................................... 13 APPENDIX 2. PRODUCTION BUILDINGS AND FACILITIES ............................................................................. 17 1 1. LOCATION AND LAND CATEGORY The production complex has an area of 21.9 ha and includes buildings and facilities of an area of 87.8 th.m2. STROMMASHINA production complex is located in the industrial zone at: 10а XXII Parts'ezda Street in the Sovetskiy district of Samara. The production complex is located in the areas classified as "Industrial companies and warehouses" PK1 (hazard class 1, 2) and "Lands of inhabited localities" PK3 (hazard class 5, 6). Distance to residential buildings – 300...1500 meters (depending on the starting point at the site). By road: the industrial complex is facing XXII Parts'ezda st. and Kabelnaya st. A distance along XXII Parts'ezda st. to the corner of XXII Parts'ezda st. and Zavpdskoye highway is about 500 m. By rail: goods may be delivered and received by rail (at Samarka station of the Kuybyshev Railroad). A contract for the provision and collection of rolling stock is made with VolgaUralTrans OJSC. By river: cargo unloading platforms are about 1.5 km far from the complex on the Samara river. 2 2. PRODUCTION SITE LAYOUT 3 3. TODAY History: The plant was founded in 1942. With its newly built workshop being run the plant began production of М-30 machines, water-and-oil heaters and bulkheads. 1945 – since its foundation in 1942 till the end of 1945 the plant was involved in government contracts for the manufacture of metalwork and installation of towers, manufacture and installation of radio masts. In 1946, the plant was handed over to the Ministry of Construction and Road Engineering and renamed to STROMMASHINA Kuybyshevskiy Plant. 1999/2003 – recovery and modernization. 2005 till now – the plant is a contractor of the Federal Service for Defense Order (Gosoboronzakaz) and positioning itself at the forefront of the construction material machinery market (incl. metalwork production/processing machinery) The plant employs 500 people. Core activities: Manufacture of grinding, drying, de-dusting and conveying equipment, special purpose products and metalwork. Scientific and technical subdivisions: Chief Designer Service (CDS): development, batch monitoring and final adjustment of design documents (DD) of customers; research and development; Chief process engineer service (CPES): development of technology and tooling; development of control programs for CNC lathes; Central Plant Laboratory (CPL) – this is a powerful analytical center with own test base and up-to-date process equipment allowing to conduct comprehensive inspections, tests, incoming and process control of raw material and finished products including by means of NDT. Production and processing: The plant possesses all kinds of manufacturing technologies in the field of general engineering. Production area: 90,000 sq.m. Hoisting equipment: up to 16 tons. Equipment mix: 314 metal cutting units of all major types, including, 27 CNC machines, 15 electric welding machines, 2 galvanic units, 18 large-size turning lathes, 2 large-size milling machines. 4 Mechanical and assembly: Processing workshops provide high level of accuracy and cleanliness of treated steel surfaces (including stainless steel); sheet-metal stamping, finishing cut and forming are used. The plant has mastered different types of welding and all types of brazing, including: argon arc brazing and controlled-atmosphere brazing. The plant's production capacity allows for monthly production of 300-400 tons of metalwork. Toolmaking: The plant's workshops produce fixtures and press-forms, stamps, cutting tools and instrumentation. Quality control: High quality of production is promoted by incoming inspections, quality policy and quality management system. Quality management system is based on ISO 9001, SRPP VT, complies with the requirements of GOST RV 15.002-2003 and certified by a certification authority in the OBORONCERTIFICATE certification system. At present, the production complex is a machine-building plant manufacturing a wide range of products (equipment for road construction, construction, coal, mining, chemical and oil sectors). Site premises include warehouses and offices. Please refer to the Appendix for the site master file. 5 4. RESOURCES AND UTILITIES 1. Railroad facilities: 11 rail tracks (non-through) of a total length of appr. 3.3 km. 1 diesel locomotive. Unloading/loading platforms equipped with gantry cranes. 2. Power supply: Installed capacity 12 MW, licensed capacity 18.2 MW. Supplier – SamaraEnergo OJSC, grid company – Volga IDGC. 3. Gas supply: Limit – 102,000 m3, commercial – 330,000 m3 . Supplier – Samararegiongaz LLC, grid company –SVGK. Inlet gas pressure –1.2 kg/cm3, working gas pressure – 0.25 kg/cm3. 4. Heat load: Total – 25.5 Gcal. Supplier – branch of Volga TGC. 5. Water supply: Limit – 22,152m3/year. Contract with SamaraVodokanal 1 well. Existing limits can be allocated for new projects and increased as the need arises. Currently, boiler house and heating system projects are in the pipeline. 5. ADDITIONAL INFORMATION For more information about the company, please refer to the website at www.strommashina.com 6. REGION IN BRIEF Samara Oblast is a densely populated region of Russia. The region is regarded for its well- developed industry, construction industry and construction infrastructure. 6 Samara Oblast is a federal subject of Russia (an oblast) and a part of the Volga Federal District. The region borders with Saratov, Ulyanovsk and Orenburg Oblasts, the Republic of Tatarstan and Kazakhstan (in a very small part). Governor – Vladimir Vladimirovich Artyakov. The region's administrative center is the city of Samara. Population Population: 3,167.2 thousand people (July 2010). The region ranks 2nd in the Volga region and 12th in Russia. Population density and urbanization: the region is the leader of the Volga region with its 80.3% of urban population. The population of Samara is 1,134 thousand people (as of January 2010). The population of a two-center agglomeration Samara-Tolyatti, including the satellites Novokuybyshevsk, Kinel, Chapaevsk, Zhigulyovsk is 2.3 million (ranks 3rd in Russia to Moscow and St. Petersburg). Fossil minerals Fuel resources: oil, natural gas, oil shale; a variety of raw construction materials and water resources. 7 Samara Oblast is the old oil-producing region with its 2.6% in Russian oil production. More than 380 oil fields were explored and developed. In 2000-2009, average annual oil production amounted to more than 11.0 million tons. In 2009, oil production amounted to 13,170,000. tons, which is 11.5% more than in 2008. A topical issue is the development and implementation of effective ways to increase oil recovery and ensuring the best use of associated gas extracted in the development of oil fields. Mineral construction materials include building stone, brick and tile raw materials, building sand, expanded clay, refractory clay, cement raw material, gypsum, carbonate rocks for production of lime, gypsum and anhydrite, sand and gravel, glass-making sand. Mining and chemical raw materials include phosphorites, native sulfur, rock salt, asphaltites and bitumen, natural bitumen and oil shales. Mining resources include molding sand, bentonite clay and zeolite-containing rocks. Major industries The industry is represented by appr. 400 large and medium-sized companies and more than 4,000 small companies. The most developed industries are mechanical engineering and metalworking, fuel industry, electric power sector, chemical and petrochemical industry, nonferrous metallurgy. Mechanical engineering is represented by an almost full range of basic industries, in which the automotive industry plays a major role. The share of vehicles produced by AvtoVAZ (Tolyatti) is more than 70% of the country's production. The share of main petroleum products such as petrol, diesel and fuel oil is 10-12%. Specialization ratio (per capita production): industrial output 1.9 – ranking 2nd to