**BISNIS Searchfor Partners – August 2, 1999**

 

BISNIS Searchfor Partners@ helps U.S.companies to find investment opportunities in the expanding markets of theformer Soviet Union.  Theseopportunities are provided solely as an informational service and do notrepresent an endorsement by the U.S. Department of Commerce.  **Verificationof these leads and due diligence of the companies is the responsibility of thereader.**

** **

 BISNIS Searchfor  Partners@  is distributed viabiweekly e-mail.  A limitedselection of leads is published in the monthly print BISNIS Search for Partnersnewsletter.  A full selection ofBISNIS leads and other market intelligence is available via BISNIS OnLine at www.bisnis.doc.gov.  To receive the SFP biweekly report, e-mailBISNIS at [email protected] or call (202) 482-4655.

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Index of Investment Opportunities

Azerbaijan – Waste Processing

Kazakhstan – Agribusiness

Kazakhstan – Mining

Chelyabinsk, Russia – FoodProcessing/Packaging Equipment

Moscow, Russia –Telecommunications

Novosibirsk, Russia – Machinery

Pskov, Russia – Timber Processing

Saratov, Russia – Oil&Gas

St. Petersburg, Russia – Optics

St. Petersburg, Russia – GasStations

Tula, Russia –Woodworking/Consumer Goods/ Furniture

Tver Region, Russia – Machinery

Voronezh Region, Russia –Machinery

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***  Azerbaijan  ***

 

1.

Industry: Waste Processing

Company: Vtorresources 

The company was established in1965 and privatized in 1997. Currently, Vtorresources employs 52 people.  The company owns 14,700 square meters of office andproduction space and 3.4 hectares of land.  The company leases some of its land to other companies.  The company owns  an administrative complex (1,820 squaremeters).  Company's productionspace occupies  4,300 squaremeters, while a covered warehouse occupies additional 2,200 square meters.  The company specializes in processingof production waste, including secondary tissue, mackle-paper, chemical waste,glassware, and tires.  In addition,the company is involved in repairing and manufacturing of wooden and paste-boardpackages and sales of construction materials.  The company processes up to 1800 - 2000 ton of wasteannually.  Company's local clients(10%) include private companies, government agencies, and foreigncompanies.  90% of company'scustomer base is located Russia, Ukraine, Georgia, and Turkey.  The company has established strongbusiness ties with Kubankrovlya (Russia), The Kiev Paper Factory (Ukraine),Gruzbumprom (Georgia), and with several Turkish companies.  Vtorresources has a monopoly on wasteprocessing in Azerbaijan.  Thecompany was awarded the “American Grand-Pris" by the Coordinating Councilof the Canadian National Institute for Marketing. 

The company seeks a joint venturewith U.S. companies to produce paper and cardboard from recycledmaterials.  The company willcontribute its manufacturing and warehousing facilities, office space, guaranteedsupply of raw materials, workforce, and its established customer base.  A U.S. partner is expected to supplyequipment and partial financing.

A business plan in Russian isavailable upon request.  Thecompany can conduct business in

English.  Company's financial statements were audited by the taxauthorities of Azerbaijan.

Contact: Oktay Agasiyev, GeneralDirector

Vtorresources

2nd Poperechnaya Street, 3

Baku, Azerbaijan 370031

Tel:  +99-412-668551

Fax:  +99-412-673944

Source: BISNIS Representative inAzerbaijan

 

*** Kazakhstan  ***

 

2.

Industry: Agribusiness 

Company: Rahat Group

The Kazakhstani-Austrian Joint Venture Rahat (85%Kazakhstani, 15% Austrian) was established in 1992 with a chartered capital ofUS$100 million. The JV was created to build Almaty's first five-star hotel --The Hyatt Rahat palace.  During thepast six years, the Rahat Group has grown to include 16 subsidiaries. JV Rahatis the Group's parent company.  JVRahat employs more than 1,700 people. The annual turnover of the Group totalsUS$100 million.  The firm has verystrong government contacts and extensive international businessexperience.  The Rahat Groupincludes: Rahat Securities (securities services for corporate clients andindividuals); Rahat Art (advertising and publishing); Rahat Trade (two tradinghouses); Rahat Metals (trading in metals and raw materials); Rahat Exchange(currency operations); Rahat TV (television channel); Rahat Invest; RahatBoutique (clothing); Casino Plaza; Rahat Transservice(transportation services,catering, hotel supplies); Rahat Disco (production and bottling of vodka andmineral water); Rahat Air Company-Gyatzint (charter flights to Turkey,Malaysia, Singapore, U.A.E.); Ersultan (trading and construction); Rahat TravelInternational; Nusipjeanov and Co Ltd (pharmacy); and Rahat Telecom.  In 1997, Rahat Group acquired a farmUchkhoz Aksay located approximately 10 kilometers from Almaty. The farmspecializes in growing wheat, fodder-grass, and animal breeding (cows, horses).The farm has 50 workers.  The  farm occupies 1,000 hectares of land.In addition, Uchkhoz Aksay has a horse farm with 40 Arabian and Englishthoroughbreds. The firm plans to expand its business to include a hippodrome.

                    Rahatseeks a U.S. joint venture partner to develop the farm, establish milk and meatprocessing plants, and grow and process rice, corn and other crops.  A business plan in Russian and Englishare available upon request. The firm can conduct business in English.

Contact: Mr. Dinmukhamed Aisautov, Vice President 

144A Tchaikovsky Street

Almaty 480091, Kazakhstan

Tel: +7-3272-629867

Fax: +7-3272-506089

or 

U.S. Embassy Commercial Service

531 Seyfullin Prospect, 3rd Floor

Almaty 480091, Kazakhstan

Tel: +7-3272-587920

Fax: +7-3272-587922

E-mail: 

Source: BISNIS Representative inKazakhstan 

 

3.

Industry: Mining

Company: Alash

Alash, one of the largest privateKazakhstani mining companies, was established in 1994. Alash specializes indevelopment of mineral deposits in Kazakhstan and quartzite, limestone,manganese, and other ore processing. Since 1994, Alash has expanded into a group of  companies that includes Centrgeologosyemka (Karaganda); UTRU(Karaganda region);

Kramds-Quartzit (Karagandaregion); Kent (Karaganda); Alash-Sauda (Almaty);

Alash-Service (Almaty); TemirtauChemical Metallurgical Combinate (Temirtau);

Akmolastroyfaians (Astana); andAlashBank (Almaty).  Alash holdsmore than 20 licenses to explore and develop several largest mineral depositsin the country.  Alash currentlyemploys 3,000 people.  Company'sproduction volume totaled 1.3 million ton of  limestone, 284,000 ton of quartzite concentrate; 50,000 tonof manganese concentrate; 12,000 ton of calcium carbide; and 1,000 ton of slackand burnt lime.  According to thecompany's representative, Alash is the only producer of calcium carbide inKazakhstan.  The largest industrialplants and joint-venture companies from Kazakhstan, Russia, Latvia, Lithuania,Uzbekistan, Turkmenistan, and Kyrgyzstan are among company's clients andbusiness partners.  Alash plans toexpand its operations to include production of quality construction materialsfor Kazakhstan and other CIS countries. The firm is conducting negotiations with equipment suppliers fromFrance, Italy, Germany, Russia, and Byelorussia.  

Alash seeks a U.S. partner toproduce acetylene soot, and soot based products (ink for printers, toner forcartridges, etc.) from carbide wastes. Alash seeks U.S. technology, production equipment, and financing.  The proposed joint venture will be apotential candidate to receive EcoLinks Quick Response Award and ChallengeGrant (a new initiative of the U.S. Agency for International Development.)  The firm will finalize its businessplan upon receiving offers from prospective equipment suppliers.  The company can conduct business inEnglish. 

Contact: Mr. Temirkhan Mukhambediarov,President

Ms. Tatyana Chernoglasova, Head ofTechnical-Scientific Center   

84 Adi Sharipova Street,

Almaty 480012, Kazakhstan

Tel: +7-3272-670747

Fax: +7-3272-671162

E-mail: [email protected]

or          

U.S. Embassy Commercial Service

531 Seyfullin Prospect, 3rd Floor

Almaty 480091, Kazakhstan

Tel: +7-3272-587920

Fax: +7-3272-587922

E-mail: 

Source:   BISNIS Representative in Kazakhstan 

  

**  Chelyabinsk, Russia ***

 

4.

Industry:  Food Processing/Packaging equipment

Company: Agrotechnika, OOO 

Agrotechnika is a new companyfounded to implement a project of construction of a pure-pack packagingproduction plant.   The plantwill produce milk packages of 1 l., 0.5 l., and 0.25 l. Production volume is projected at 1 million of packs a day.  The market study identified totalRussia's demand for milk packages to be equal to 1 billion packages ayear.  The only Russian producer of“tetra-rex” and “tetra-pak” analogs is Lambumiz located in Moscow.  The rest of the demand is satisfied byforeign producers from Netherlands, Finland, Sweden and the U.S.   Most of the domestic dairies willbe able to cut their costs by using locally produced packs.  Current Chelyabinsk Region's annualconsumption account for 144 million packs.  Future customers of the plant's output include over 100dairies in the Ural Regions, Republic of Bashkiriya and Western Siberia.  

The project has been underdevelopment for three years. Therefore, the first stages of the project has already been completed,including feasibility studies and development of a business plan in Russian andEnglish.  In addition, theconstruction site has been selected and planned; the Chelyabinsk Ministry ofEconomy has examined and approved the project; and the relationships withprospective suppliers and customers has been established.  Furthermore, the company has received aconfirmation letter from Sberbank's branch in Chelyabinsk that specifies bank'sinterest in project participation. Finally, the TACIS experts have chosen the project for consideration forEBRD financing.  Total projectcosts are estimated at US$17.5 million, including US$15.0 million for equipmentpurchases, and US$2,5 million for construction of the plant, installation, andstart-up costs.  The company canprovide up to US$2,5 million of project financing.  The company seeks a U.S. partner interested to participatein this project.  

Contact: Alexander I. Yakushev,General Director

75, S. Krivoy Str., off.426

454080, Chelyabinsk, Russia

Tel: +7-3512-653933

Fax: +7-3512-655989

Source: BISNIS Representative inMoscow

 

***  Moscow, Russia ***

 

5.

Industry: Telecommunications

Company: TeleRoute Communications

The company was founded in 1998and privatized in 1999 as a closed joint stock

company with no stateparticipation.  It employs 6people.  TeleRoute is atelecommunications operator that offers national, long distance, andinternational connection as well as routing and POTS.  The company provides its services primarily to localbusinesses.  Company's salestotaled US$225,000 in 1998. TeleRoute has a strong presence on the Moscow telecom market.  The company owns a state-of-the-arttechnology.  Company's strategy isbased on offering customized solutions to its customers.  The company owns a know-how  (a router that optimizes signaldistribution among the lines) that allows significant cost cuts.  TeleRoute is in the negotiations with anumber of West European international telecom operators.  Ericsson and Bosch, company's businesspartners, has provided training to TeleRoute employees.  Company's General Director andTechnical Director successfully completed advanced technical/business trainingprograms in Scandinavia under Ericsson supervision and in Los Angeles, CA underDia Vox' program.

The company considers realizationof VoIP-based interconnection project. TeleRoute wants to establish a partnership with a U.S.-based telecomoperator to serve as a termination facility on the Russian market.  TeleRoute generates ca.30,000 minutesof international traffic per month, most of which is routed to the U.S.recipients.  Meanwhile, the companyhas a capacity to handle up to 1 million minutes of incoming traffic at highlycompetitive rates.  According to abusiness plan (available in English upon request), the project will require upto US$500,000 to expand its service network to the regions.  The company will provide partialfinancing, while a U.S. partner is expected to contribute new technology andequipment.  According to thebusiness plan, the project has a payback period of 30 months.  TeleRoute

has a hard currency account andcan conduct business in English. Finally, the company is interested in signing a dealership agreementwith telecom equipment manufacturers and distributors.

Contact: Alexander A. Kunitsyn,Director General

Vadim Yu. Popov, Deputy DirectorGeneral

Building6, #2 Sibirsky Proyezd, 

Moscow 109029 Russia

Tel: +7-095-777-6973

Fax: +7-095-777-6972

E-mail: [email protected]

Source: BISNIS Representative inMoscow

 

***  Novosibirsk, Russia ***

 

6.

Industry: Machinery

Company: Stankosib

Open Stock Company Stankosib wasestablished in 1934 and privatized in 1990.  The company specializes in production of metal-cutting (for50 years) and wood-working machines (for 8 years), consumer goods made ofplastic (for10 years), gasoline pumps (for 4 years), and technical servicingandsales of Mercedes cars (for 2 years). The company leases its land with a total area of 50,000 sq.m. on along-term basis, and owns the buildings and equipment located on its land.  The company has production space of32,000 sq.m., and office space of 5,000 sq.m.  Its annual sales total US$1,650,000.  The company has international businessexperience with Tankanlagen Zalskotten (Germany), one of the main European producersof gasoline pumps, and Mercedes company. The company has strong contacts with the local government.

The company seeks a joint venturewith a US partner to produce high-quality gasoline pumps.  Planned annual volume of production -1,100units.  Stankosibwill contribute its production, warehousing and office space, other facilities,existing equipment, qualified workforce. The company is willing to provide aconsiderable package of its shares. The U.S. partner is expected to provide financial investment, otherequipment needed to produce the pumps, modern technologies.

Contact: Igor Tikhomirov, Director

Bolshevistskaya St., 131

Novosibirsk, Russia 

Tel: +7-3832-663847

Fax: +7-3832-669502

Source: BISNIS Representative inNovosibirsk

 

***  Pskov, Russia ***

 

7.

Industry: Timber Processing

Company: Block-Service

Block-Service is new small-sizedcompany headquartered in Pskov, Russia. The company is planning to satisfy manufacturers' needs for naturalquality wood materials and, in the process, build and strengthen its ownproduction of finished furniture for sale to the end consumer.  According to the company's businessplan, the annual volume sales for all types of products made from wood willtotal 13,000 cubic meters.  Thecompany will have the following scope of work: logging, carriage to timberprocessing, sawing, drying, and intensive processing of dried board.  The company will specialize inproducing joined constructions made from wood for furniture, joiner, andbuilding industries.  Product qualitywill meet DIN standards.

Block-Service is looking for aU.S. partner to start joint production and timber processing.  The manufacturing site is located inNovgorod, Russia.  According to thecompany's management, the project has the support of the local government.  A detailed business plan is availableupon request.

Contact: Dr. Ivan I. Belyakov,Director

N. Vasilyeva Street

Building 51, Office 69 B

Pskov, 180014 Russia

Tel: +7-81122-24451

Fax: +7-81122-23069/26041

Source: BISNIS Representative inSt. Petersburg

 

***  Saratov, Russia ***

 

8.

Industry: Oil&Gas

Company: COMBIN

COMBIN is a small private companyfounded in 1993 that currently employs 32 people.  The company is engaged in sales of liquefiedhydro-carbonated gas and conversion of cars to gas-powered type.  Company's annual sales of gas total1,700-2,000 ton.  In addition, the companyequips approximately 1,000 -1,300 cars with gas-fueled systems a year.  The company has reported its annualsales at US$200,000.  The companyowns office space of 80 sq.m., conversion premises of 1,000 sq.m., and 7 gasfilling stations.  Company occupiesa total area of 10,000 sq.m. COMBIN's primary customers are local companies and individuals.  There are 15 other firms in the SaratovRegion selling liquefied gas and 7 companies equipping vehicles with gas-fueledsystem.   COMBIN, incollaboration with the Saratov Chamber of Commerce has established theAssociation of Gas Sellers in the Region. The company is an official dealer of the Novogrudsky Plant of GasMachinery (Belarus).  In addition,the company has won the tender of the Regional Administration and has beenassigned the municipal order to convert the municipal transportation togas-powered vehicles.  According toits business plan, COMBIN plans to set up 10-15 new conversion sites and a newdepot close to the railway station for shipping, handling, storing andsupplying gas to the existing and planned gas stations.  The network will be expanded to coverthe rest of the Saratov Region, and the adjacent Tambov and Penza Regions. 

The company seeks U.S.partners  for this project.  The company will contribute itswell-developed infrastructure, gas stations and provide feasibility studies andconstruction of new sites.  COMBIN is interested to be contacted by the U.S. manufacturers anddistributors of the conversion equipment and equipment for gas stations.   The company has a strong supportfrom the Regional and Municipal Administrations.  The company can conduct business in English.  Company's management has attended atraining program of the U.K. Commercial University, Open School of Business.  

Contact: Vitaly M. Klimov, GeneralDirector

85, Moscovskaya Str.

410600, Saratov

Tel: +7-8452-241535/731687

Fax: +7-8452-731689

Source: BISNIS Representative inMoscow

 

 

***  St. Petersburg ***

 

9.

Industry: Optics

Company: Fokus Joint Stock Company

Fokus is a small-sized privatecompany located in St Petersburg, Russia. The company was founded in 1992 and has a staff of 46 employees.  Fokus manufactures a broad range ofoptical details and products, including spherical lenses, colored opticalfilters, color-dividers, as well as several types of specialized mirrors usedin the automotive industry.  Overninety percent of the company's products are exported to Europe, Australia,North and South America.  Thecompany has exported its products overseas for over 7 years.  The remaining 10 percent of theproducts are distributed throughout Russia.  According to Fokus' management, its sales in 1998 reachedUS$650,000.  

Fokus is interested in setting upa joint production with a similar U.S. company to increase the volume andspectrum of manufactured products on the basis of Fokus' existing facilitiesand technologies.

Contact: Mr. Mikhail M. Trukhin,General Director

Polyustrovskiy Prospect 61

St Petersburg, 195197 Russia

Tel: +7-812-540-6014

Fax: +7-812-348-4830

Email: [email protected]

Source: BISNIS Representative inSt. Petersburg

 

 

10.

Industry: Gas Stations

Company: Phaeton

Phaeton is a medium-sized companylocated in St Petersburg, Russia. The company constructed and operates a number of gas service stations inSt .Petersburg.  Phaeton isplanning to build 50 additional gas service stations in St Petersburg in 1999-2000.

Phaeton is interested in finding aU.S. manufacturer of gasoline pump service stations to provide over 500gasoline pumps in 1999-2000.

Contact: Mr. Anton Ivanov, Manager

Maly Prospect 1/5

St Petersburg, 197198 Russia

Tel: +7-812-230-5371

Tel/fax: +7-812-230-3172

Email: [email protected]

Source: BISNIS Representative inSt. Petersburg

 

 

***  Tula, Russia ***

 

11.

Industry: Woodworking/ConsumerGoods/ Furniture

Company: Micron, OOO; Micretal,OOO

Micron and Micretal are two smallTula-based companies that employ 10 and 18 people respectively.  Both companies were founded in 1987with no state participation.  Micronspecializes in production of wigs and other natural hair-based products.  Micretal is an offspring of the EtalonClock Plant, and currently, is the only full-cycle manufacturer of clocks inRussia (80% of company's output). In addition, the company assembles and repairs furniture (20% ofoutput).  The annual sales totaledUS$70,000 for each company in 1998. Total territory owned by the two companies total 450 sq.m.  The primary consumers of Micretal'sproducts are regional state and private companies.  Micretal is currently selling clocks at US$4,000-6,000 apiece to the Federal and Regional Administrations. The company enjoys severaltax breaks.  

The companies have joined theirefforts to attract foreign investors. They are looking for American companies to set up a joint venture toproduce high-quality wooden construction materials.  A U.S. partner is expected to supply equipment, while theRussian companies will their existing production facilities, skilled workforce,and technology.   In addition,the companies plan to purchase a controlling stake in the Etalon ClockPlant.  Finally, Micretal seeks toestablish joint clock production with a U.S. clock manufacturer. 

Contact: Valery I. Sosnin,Director of Micron

54a, Gogolevskaya Str.

300000, Tula, Russia

Tel: +7-0872-361141/264970

Fax: +7-0872- 361141

E-mail: [email protected]

Source: BISNIS Representative inMoscow

 

***  Tver Region, Russia ***

 

12.

Industry: Machinery

Company: Stromgeomash

Open joint stock companyStromgeomash is located off the Moscow-St. Petersburg highway in the city ofTver.  Stromgeomash was establishedin 1993 as the result of privatization of the Tver Project and DesignBureau.  76% of company's sharesbelong to a large enterprise Elektrosvyaz. 

Stromgeomash is a machine buildingand metal processing enterprise that occupies 4,500 square meters of productionfacilities, 648 sq.m. of warehouses, 6,275 sq.m. of office space, and 4,032sq.m. under construction.  Thecompany currently employs 70 people.

Stromgeomash Director YuriyChesalov heads company's business development. A member of the Russian Union ofManufacturers, Mr. Chesalov maintains strong relationships with the localofficials.  In addition, Mr.Chesalov works closely with foreign companies.  The company has been agressively prusuing new businessopportunities.  For example, whilemaking prefabricated houses and press-form, Stromgeomash has constructed aspecial kiln-drier for decreasing the humidity of

exported wood.  Currently, Stromgeomash has been chosenas a subcontractor for manufacturing kegs for a well-known Tver brewingcompany.  80-90% of beer in Russiais sold in bottles, but the kegs are becoming increasingly popular.  Furthermore, Stromgeomash has conductednegotiations with a large Western consumer goods manufacturer to launchprocessing of recycled plastic.

The company seeks a U.S. partnerto launch production of industrial products in Tver. 

Stromgeomash can offer itspremises, expertise, and favorable location.  The Russian company can secure credit guarantees from theRegional Administration.  Thecompany can conduct business in English.

Contact: Yuriy Chesalov, GeneralDirector

Stromgeomash, Promzona Lazurnaya,35

Tver, Russia 170017

Tel: +7-0822-337675

Fax: +7-0822-427154

 

 

***  Voronezh Region, Russia***

 

13.

Industry: Machinery

Company: Borkhimmash, JSC

Borkhimmash was established in1893 and is one of the oldest company in the industry.  The company was privatized in 1993 andcurrently has no state ownership. It employs 1300 people.  Thecompany specializes in production of heat exchange machinery.  The produced machinery has thefollowing technical characteristics: tube casing type with fixed lattice withdiameter varying from 159 mm to 1,800 mm, with flexible head, with U-shapepipes with diameters varying from 325 mm to 1,200 mm with allowed pressure ofup to 4 Mpa and modifications. Borkhimmash produces heat exchangers, differenttypes of refrigerators, and other commercial equipment, particularly for oiland gas industry.  The company hasan international certificate ISO-9001-94, ASME.  Russia's largest enterprises Gazprom, UES of Russia, NORSI,and Lukoil account for up to 80% of company's sales.  Local oil&gas, chemical and metallurgical refineries andplants accounts for 5% of sales, while the remaining 15% of production outputhas been exported to Cuba, Baltic countries, Mongolia, China, and Turkey since1968.  The  company generated US$7 million inrevenues with profit margin of 23%. Company's financial statements were auditedby the Russian auditing company.

Borkhimmash is looking for anAmerican partner/equity investor to expend its current business. 

Contact: Sergey Bolshakov, Memberof the Supervisory Board

Tel: +7-095-197-2473

Tel/Fax: +7-095-442-6889

E-mail: [email protected]

Source: BISNIS Representative inMoscow