SEARCH FOR PARTNERS

The Business Information Service for the Newly Independent States (BISNIS) is the U.S. Government's clearinghouse for trade and investment information on the Newly

Independent States of the former Soviet Union.

BISNIS publishes SEARCH FOR PARTNERS to help

U.S. companies find investment opportunities in the expanding markets of the former Soviet Union.

SEARCH FOR PARTNERS is also distributed via biweekly e-mail broadcast. A limited selection of these leads

are published in this monthly newsletter. Previous e-mail

broadcasts are available through the BISNIS home page at

www.bisnis.doc.gov. To receive the biweekly report, e-mail

BISNIS at bisnis@ita.doc.gov or call (202) 482-4655.

These opportunities are provided solely as an informational service and do not represent an endorsement by the

U.S. Department of Commerce. Verification of these leads is

the responsibility of the reader.

BISNIS

OCTOBER 1999

Published by the Business Information Service for the Newly Independent States (BISNIS)

U.S. DEPARTMENT OF COMMERCE

International Trade Administration

AZERBAIJAN

Industry: Waste Processing

Company: Vtorresources

Vtorresources was established in 1965 and privatized in 1997.

Currently, it employs 52 people. The company owns 14,700 sq.

m. of office and production space and 3.4 hectares of land,

some of which is leased to other companies. Vtorresources

owns an administrative complex (1,820 sq. m.). The company’s

production space occupies 4,300 sq. m., while a covered warehouse occupies an additional 2,200 sq. m.. The company specializes in processing production waste, including secondary

tissue, mackle-paper, chemical waste, glassware, and tires. In

addition, the company is involved in repairing and manufacturing wooden and pasteboard packages and selling construction materials. The company processes up to 1,800 - 2,000 tons

of waste annually. Its local clients (10 percent) include private

companies, government agencies, and foreign companies.

Ninety percent of the company’s customer base is located in

Russia, Ukraine, Georgia, and Turkey. The company has established strong business ties with Kubankrovlya (Russia),

The Kiev Paper Factory (Ukraine), Gruzbumprom (Georgia), and

with several Turkish companies. Vtorresources has a monopoly

on waste processing in Azerbaijan. The company was awarded

the “American Grand-Pris” by the Coordinating Council of the

Canadian National Institute for Marketing.

Index to Leads by Industry Page

Agribusiness 1

Banking Equipment 7

Construction 4

Consumer Goods 2,6

Food Processing and Packaging 3,7

Furniture 6

Gas Station 6

Machinery 5,6,7

Medical 3

Mining 2

Oil and Gas 5

Optics 6

Timber 5

Telecommunications 4

Waste Processing 1

Woodworking 6

Xylitol 4

Vtorresources seeks a joint venture with a U.S. company to

produce paper and cardboard from recycled materials. The

company will contribute its manufacturing and warehousing

facilities, office space, guaranteed supply of raw materials, work

force, and its established customer base. A U.S. partner would

supply equipment and partial financing. A business plan in

Russian is available upon request. The company can conduct

business in English. Its financial statements were audited by

the tax authorities of Azerbaijan.

Contact: Oktay Agasiyev, General Director

2nd Poperechnaya Street, 3

Baku, 370031, Azerbaijan

Tel: +99-412-668551

Fax: +99-412-673944

Source: BISNIS Representative in Azerbaijan

KAZAKHSTAN

Industry: Agribusiness

Company: Rahat Group

The Kazakhstani-Austrian joint venture Rahat Group (85

percent Kazakhstani, 15 percent Austrian) was established in
BISNIS SEARCH FOR PARTNERS - October 1999

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1992 with US$100 million in charter capital. The joint venture

was created to build Almaty’s first five-star hotel — The Hyatt

Rahat Palace. During the past six years, the Rahat Group has

grown to include 16 subsidiaries. It employs more than 1,700

people; its annual turnover totals US$100 million. The firm has

very strong government contacts and extensive international

business experience. The Rahat Group includes: Rahat Securities (securities services for corporate clients and individuals);

Rahat Art (advertising and publishing); Rahat Trade (two trading houses); Rahat Metals (trading in metals and raw materials); Rahat Exchange (currency operations); Rahat TV (television channel); Rahat Invest; Rahat Boutique (clothing); Casino Plaza; Rahat Transservice (transportation services, catering, hotel supplies); Rahat Disco (production and bottling of

vodka and mineral water); Rahat Air Company-Gyatzint (charter flights to Turkey, Malaysia, Singapore, U.A.E.); Ersultan

(trading and construction); Rahat Travel International;

Nusipjeanov and Co Ltd. (pharmacy); and Rahat Telecom. In

1997, Rahat Group acquired a farm, Uchkhoz Aksay located

approximately 10 kilometers from Almaty. The farm specializes

in growing wheat, fodder-grass, and animal breeding (cows,

horses). The farm has 50 workers. It occupies 1,000 hectares of

land. In addition, Uchkhoz Aksay has a horse farm with 40

Arabian and English thoroughbreds. The firm plans to expand

its business to include a hippodrome.

Rahat seeks a U.S. joint venture partner to develop the farm,

establish milk and meat processing plants, and grow and process rice, corn, and other crops. A business plan in Russian

and English are available upon request. The firm can conduct

business in English.

Contact: 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: almaty.office.box@mail.doc.gov

Source: BISNIS Representative in Kazakhstan

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Industry: Mining

Company: Alash

Alash, one of the largest private Kazakhstani mining companies, was established in 1994. Alash specializes in developing mineral deposits in Kazakhstan in 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 (Karaganda region), Kent (Karaganda), AlashSauda (Almaty), Alash-Service (Almaty), Temirtau Chemical

Metallurgical Combinate (Temirtau), Akmolastroyfaians

(Astana), and AlashBank (Almaty). Alash holds more than 20

licenses to explore and develop several large mineral deposits

in the country. Alash employs 3,000 people. The company’s

production volume totaled 1.3 million tons of limestone, 284,000

tons of quartzite concentrate, 50,000 tons of manganese concentrate, 12,000 tons of calcium carbide, and 1,000 tons of slack

and burnt lime. According to the company’s representative,

Alash is the only producer of calcium carbide in Kazakhstan.

The largest industrial plants and joint venture companies from

Kazakhstan, Russia, Latvia, Lithuania, Uzbekistan,

Turkmenistan, and Kyrgyzstan are among the company’s clients and business partners. Alash plans to expand its operations to include the production of quality construction materials for Kazakhstan and other CIS countries. The firm is conducting negotiations with equipment suppliers from France,

Italy, Germany, Russia, and Byelorussia.

Alash seeks a U.S. partner to produce acetylene soot and

soot-based products (ink for printers, toner for cartridges, etc.)

from carbide wastes. Alash seeks U.S. technology, production

equipment, and financing. The proposed joint venture will be

a potential candidate to receive EcoLinks Quick Response

Award and Challenge Grant (a new initiative of the U.S. Agency

for International Development). The firm will finalize its business plan upon receiving offers from prospective equipment

suppliers. The company can conduct business in English.

Contact: Temirkhan Mukhambediarov, President

Tatyana Chernoglasova

Head of Technical-Scientific Center

84 Adi Sharipova Street

Almaty, 480012, Kazakhstan

Tel: +7-3272-670747

Fax: +7-3272-671162

E-mail: alashbnk@online.ru

or U.S. Embassy Commercial Service

531 Seyfullin Prospect, 3rd Floor

Almaty, 480091, Kazakhstan

Tel: +7-3272-587920

Fax: +7-3272-587922

E-mail: almaty.office.box@mail.doc.gov

Source: BISNIS Representative in Kazakhstan

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Industry: Consumer Goods

Company: Aktaza

Established in 1998, Aktaza is a private Kazakhstani commercial and consumer goods manufacturing company that sells

metal and metal goods. Aktaza is a subsidiary of Cottony, a

Kazakhstani medical cotton wool producer. It also shares its

management with Cottony.

Aktaza employs 25 people. In 1999, the firm acquired the

Almaty Electrobytpribor (electrical household appliance manufacturing) Plant. According to Aktaza’s representative, in Central Asia the plant is the sole manufacturer of electrical household appliances, washing machines, and heaters, all of which

are in high demand due to their low prices and simplicity of use,

especially in rural and suburban areas of Kazakhstan.
BISNIS SEARCH FOR PARTNERS - October 1999

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The plant was commissioned in 1987 and reorganized as a

joint-stock company in 1994. In 1997, in an effort to attract

foreign investors, the plant’s economic and financial condition

was analyzed by experts with the Technical Assistance to the

Commonwealth of Independent States (TACIS) program in

Kazakhstan. Several companies from Poland and Malaysia expressed a strong interest in establishing a joint venture but

failed to obtain authorization from Kazakhstani authorities. Due

to insufficient working capital in 1998, the production volume

of the plant fell by 10-12 percent and the number of employees

from 120 to 1,500 people.

According to Aktaza’s representative, the plant is very well

located, has a well-developed infrastructure, and is equipped

with unique manufacturing machinery. Aktaza seeks a U.S.

long-term join venture partner to fully rehabilitate and further

develop the Almaty Elektropribor Plant, and help Aktaza expand its business to include the production of electrical household appliances in Kazakhstan and neighboring CIS countries.

A business plan in Russian and English is available upon request. The company can conduct business in English.

Contact: Aijan Uteulina, Deputy Director

31 Kabanbai Batyra Street

Almaty, 480100, Kazakhstan

Tel/Fax: +7-3272-61-21-26

or U.S. Embassy Commercial Service

531 Seyfullin Prospect, 3rd Floor

Almaty, 480091, Kazakhstan

Tel: +7-3272-58-79-20

Fax: +7-3272-58-79-22

E-mail: almaty.office.box@mail.doc.gov

Source: BISNIS Representative Kazakhstan

CHELYABINSK, RUSSIA

Industry: Food Processing and Packaging Equipment

Company: Agrotechnika

Agrotechnika is a new company that was founded to implement a construction project for a pure-pack packaging production plant. The plant will produce milk packages. Its production volume is projected to be 1 million packs a day. A market

study identified Russia’s total demand for milk packages to be

equal to 1 billion packages a year. The only Russian producer

of “tetra-rex” and “tetra-pak” analogs is Lambumiz located in

Moscow. The rest is from foreign producers in the Netherlands, Finland, Sweden, and the United States. Most of the

domestic dairies will be able to cut their costs by using locally

produced packs. The Chelyabinsk Region’s annual consumption is 144 million packs. Future customers of the plant’s products includes over 100 dairies in the Ural Regions, the Republic

of Bashkiriya, and Western Siberia.

The project has been under development for three years.

Thus, the first stages of the project have already been completed, including feasibility studies and development of a business plan in Russian and English. In addition, the construction site has been selected and planned; the Chelyabinsk Ministry of Economy has examined and approved the project; and

relationships with prospective suppliers and customers have

been established. Furthermore, the company has received a

confirmation letter from Sberbank’s branch in Chelyabinsk that

specifies the bank’s interest in project participation. Finally,

TACIS experts have chosen the project for consideration for

EBRD financing. Total project costs are estimated to be US$17.5

million, including US$15 million for equipment purchases, and

US$2.5 million for construction of the plant, installation, and

start-up costs. The company can provide up to US$2.5 million

for project financing. The company seeks a U.S. partner interested in participating in this project.

Contact: Alexander I. Yakushev, General Director

75, S. Krivoy Street, Office 426

Chelyabinsk, 454080, Russia

Tel: +7-3512-653933

Fax: +7-3512-655989

Source: BISNIS Representative in Moscow

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Industry: Medical

Company: OTAVA

OTAVA was established in 1991 and is a privately held company. The company retails and wholesales pharmaceuticals in

Miass city, Chelyabinsk Oblast. Chelyabinsk is a highly developed industrial oblast with a population of 3.6 million. OTAVA

owns six drug stores and employs 25 people.

Russia’s financial crisis has priced many imports out of the

market. As a result, many local companies seek to begin producing quality medical materials in Russia. There is a lack of

reasonably priced quality medical products in the market. Pharmaceuticals and other medical equipment imported into Russia

are three to five times more expensive than those produced

locally. The high price for imported medicines limits this market.

OTAVA seeks a U.S. company to assist in the production of

rubber surgical gloves, condoms, and elastic bandages. The

company seeks investment or technology and equipment to

start production.

The company will invest in its production facilities. The

project is supported by the Miass government.

Contact: Oleg Goloshapov, Director

59, Ul. Oktyabrya

Miass, 456324

Chelyabinsk Oblast, Russia

Tel: +7-35135-4-09-05,2-42-59

Fax: +7-3135-2-37-99

E-mail: otava@telecom.chel.su

Source: BISNIS Representative in Yekaterinburg

KRASNOYARSK, RUSSIA

Industry: Furniture Production

Company: Life

Life, a joint-stock company, was established in 1993. The

company specializes in furniture production. Its production is
BISNIS SEARCH FOR PARTNERS - October 1999

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based on the Kozulsky timber processing plant, located in the

Krasnoyarsk Krai. The company employs 102 people, and its

annual sales of furniture and semi-products for furniture assembly totals US$240,000. The company exports its products

to Finland, Japan, and China. It plans to expand its business to

include the production of high-quality kitchen, bedroom, and

dining room furniture (up to 4,000 units per year for each type

of furniture).

The company seeks a joint venture with a U.S. partner to

produce furniture and market it worldwide. A potential partner

would contribute modern equipment.

Contact: Sergey Zyrianov

9 Perensona Street

Krasnoyarsk, Russia

Tel: +7-3912-278225

Fax: +7-3912-278225

Source: BISNIS Representative in Novosibirsk

MOSCOW, RUSSIA

Industry: Telecommunications

Company: TeleRoute Communications

TeleRoute Communications was founded in 1998 and privatized in 1999 as a closed joint-stock company with no state

participation. It employs six people. TeleRoute is a telecommunications operator that offers national, long distance, and international connection as well as routing and POTS. The company provides its services primarily to local businesses. The

company’s sales totaled US$225,000 in 1998. TeleRoute has a

strong presence on the Moscow telecom market. The company owns state-of-the-art technology. Its strategy is based

on offering customized solutions to its customers. The company owns technology (a router that optimizes signal distribution among the lines) that allows significant cost cuts. TeleRoute

is in negotiations with a number of West European international telecom operators. Ericsson and Bosch, the company’s

business partners, have provided training to TeleRoute employees. Its general director and technical director successfully completed advanced technical/business training programs

in Scandinavia under Ericsson supervision and in Los Angeles, California under Dia Vox’s program.

The company is considering a VoIP-based interconnection

project. TeleRoute wants to establish a partnership with a U.S.-

based telecom operator to serve as a termination facility for the

Russian market. TeleRoute generates ca.30,000 minutes of international traffic per month, most of which is routed to U.S.

recipients. Meanwhile, the company has the capacity to handle

up to 1 million minutes of incoming traffic at highly competitive

rates. According to a business plan (available in English upon

request), the project will require up to US$500,000 to expand its

service network to the regions. The company will provide partial financing, while a U.S. partner is expected to contribute

new technology and equipment. According to their business

plan, the project has a payback period of 30 months. TeleRoute

has a hard currency account and can conduct business in English. Finally, the company is interested in signing a dealership

agreement with telecom equipment manufacturers and distributors.

Contact: Alexander A. Kunitsyn, Director General

Vadim Yu. Popov, Deputy Director General

Building 6, #2 Sibirsky Proyezd

Moscow, 109029, Russia

Tel: +7-095-777-6973

Fax: +7-095-777-6972

E-mail: telecoms@teleroute.ru

Source: BISNIS Representative in Moscow

NOVGOROD REGION, RUSSIA

Industry: Xylitol Production

Company: Ksilit Corporation

The Ksilit Corporation, located in the Novgorod region (150

miles south of St. Petersburg), along with its partner, New England Enterprises, is seeking a U.S. company to conduct a feasibility study and to submit a formal feasibility study application to the U.S. Trade and Development Agency (TDA) for

project financing. Ksilit Corporation has a source of the raw

material needed to make polyol sweeteners, particularly xylitol,

from birch wood (bark, chips, pulp). It also has a large chemical

hydrolysis/Furfural plant which can be adapted for xylitol production. Preliminary marketing research has been conducted

by New England Enterprises.

These two companies seek a third company to assist in

developing and submitting a feasibility study to submit to TDA.

Contact: Henry Altshul, President

New England Enterprises

258 Harvard Street, Suite 302

Brookline, MA 02446

Tel: 781-793-0035

Fax: 781-793-7935

E-mail: neenter@aol.com

Source: New England Enterprises

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Industry: Construction

Company: Yekaterinburg Gypsum Plant

Yekaterinburg Gypsum Plant was established in 1957 and is

totally privatized. It is one of the largest manufacturers of

gypsum in the Sverdlovsk Oblast. The plant occupies about

12 hectares of land and owns its own manufacturing facilities

and equipment. The gypsum plant is part of a large construction holding company, Atompromkompleks.

Atompromkompleks owns shares in over 40 local companies,

specializing in manufacturing, distribution, and construction.

Yekaterinburg Gypsum Plant’s total sales in 1998 were about

US$1 million. The plant manufactures gypsum, drywall, sidewalk slabs, dry plaster mixtures and other construction materials made of gypsum. The plant began to produce water-soluble

interior and exterior paints in 1998, utilizing German components and technology. The firm has previously worked with

foreign investors and recently signed a letter of intent with a
BISNIS SEARCH FOR PARTNERS - October 1999

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Dutch company to manufacture high-quality sidewalk slabs

which will conform to European standards.

The Gypsum plant seeks a partner to expand its extraction

capabilities. Currently, the plant purchases gypsum, thus making finished products more expensive.

Contact: Aleksandr Loshchenko, Director General

Galina Stadnichuk, Chief Technologist

47, Ul. Manevrovaya

Yekaterinburg, 620050, Russia

Tel: +7-3432-52-42-01

Fax: +7-3432-52-42-07

E-mail: root@ustinol.e-burg.su

Source: BISNIS Representative in Yekaterinburg

NOVOSIBIRSK, RUSSIA

Industry: Machinery

Company: Stankosib

Stankosib, an open-stock company, was established in 1934

and privatized in 1990. The company specializes in producing

metal-cutting (for 50 years) and wood-working machines (for 8

years), consumer goods made of plastic (for 10 years), gasoline

pumps (for 4 years), and technical servicing and sales of

Mercedes cars (for 2 years). The company leases its land with

a total area of 50,000 sq. m. on a long-term basis, and owns the

buildings and equipment located on its land. The company

has production space of 32,000 sq. m. and office space of 5,000

sq. m. Its annual sales total US$1.65 million. The company has

international business experience with Tankanlagen Zalskotten

(Germany), one of the main European producers of gasoline

pumps, and the Mercedes company. The company has strong

contacts with the local government.

Stankosib seeks a joint venture with a U.S. partner to produce high-quality gasoline pumps. The planned annual volume of production is 1,100 units. Stankosib will contribute its

production, warehousing and office space, other facilities, existing equipment, and qualified work force. The U.S. partner

would provide financial investment, other equipment needed

to produce the pumps, and modern technology.

Contact: Igor Tikhomirov, Director

Bolshevistskaya St., 131

Novosibirsk, Russia

Tel: +7-3832-663847

Fax: +7-3832-669502

Source: BISNIS Representative in Novosibirsk

PSKOV, RUSSIA

Industry: Timber Processing

Company: Block-Service

Block-Service is a new small company headquartered in

Pskov, Russia. The company is planning to satisfy manufacturers’ needs for natural quality wood materials and, in the

process, build and strengthen its own production of finished

furniture for sale to the end consumer. According to the

company’s business plan, the annual volume sales for all types

of products made from wood will total 13,000 cu. m. The company will have the following scope of work: logging, carriage

to timber processing, sawing, drying, and intensive processing of dried board. The company will specialize in producing

joined constructions made from wood for the furniture, joiner,

and building industries. Product quality will meet DIN standards.

Block-Service is looking for a U.S. partner to start joint production and timber processing. The manufacturing site is located in Novgorod, Russia. According to the company’s management, the project has the support of the local government.

A detailed business plan is available upon 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 in St. Petersburg

SARATOV, RUSSIA

Industry: Oil and Gas

Company: COMBIN

COMBIN is a small private company founded in 1993 with

32 employees. The company sells liquefied hydro-carbonated

gas and converts cars to gas-powered types. The company’s

annual gas sales total 1,700-2,000 tons. In addition, the company equips approximately 1,000 -1,300 cars with gas-fueled

systems per year. The company has reported its annual sales

at US$200,000. It owns office space with 80 sq. m., conversion

premises of 1,000 sq. m., and 7 gas filling stations. The company occupies a total area of 10,000 sq. m. COMBIN’s primary

customers are local companies and individuals. There are 15

other firms in the Saratov Region selling liquefied gas and seven

companies equipping vehicles with gas-fueled system.

COMBIN, in collaboration with the Saratov Chamber of Commerce, has established the Association of Gas Sellers in the

region. The company is an official dealer of the Novogrudsky

Plant of Gas Machinery (Belarus). In addition, the company

has won a tender from the regional administration and has been

assigned the municipal order to convert the municipal transportation to gas-powered vehicles. According to its business

plan, COMBIN plans to set up 10-15 new conversion sites and

a new depot close to the railway station for shipping, handling,

storing, and supplying gas to the existing and planned gas

stations. The network will be expanded to cover the 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 its well-developed infrastructure and gas

stations, and provide feasibility studies and the construction

of new sites. COMBIN is interested in being contacted by

U.S. manufacturers and distributors of gas-fueled conversion

equipment and equipment for gas stations. The company has

strong support from the regional and municipal administrations.

It can conduct business in English, and its management has
BISNIS SEARCH FOR PARTNERS - October 1999

 6

attended a training program in the U.K. Commercial University's

Open School of Business.

Contact: Vitaly M. Klimov, General Director

85, Moscovskaya Street

Saratov, 410600, Russia

Tel: +7-8452-241535/731687

Fax: +7-8452-731689

Source: BISNIS Representative in Moscow

ST. PETERSBURG

Industry: Optics

Company: Fokus

Fokus, a joint-stock company, is a small private company

located in St. Petersburg, Russia. The company was founded

in 1992 and has a staff of 46 employees. Fokus manufactures a

broad range of optical details and products, including spherical lenses, colored optical filters, color-dividers, as well as several types of specialized mirrors used in the automotive industry. Over 90 percent of the company’s products are exported to

Europe, Australia, and North and South America. The company has exported its products overseas for over seven years.

The remaining 10 percent of the products are distributed

throughout Russia. According to Fokus’ management, its sales

in 1998 reached US$650,000.

Fokus is interested in setting up joint production with a

similar U.S. company to increase the volume and spectrum of

manufactured products on the basis of Fokus’ existing facilities and technologies.

Contact: Mikhail M. Trukhin, General Director

Polyustrovskiy Prospect 61

St. Petersburg, 195197, Russia

Tel: +7-812-540-6014

Fax: +7-812-348-4830

E-mail: focus@troukine.spb.ru

Source: BISNIS Representative in St. Petersburg

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Industry: Gas Stations

Company: Phaeton

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

Phaeton is interested in finding a U.S. manufacturer of gasoline pump service stations to provide over 500 gasoline pumps

in 1999-2000.

Contact: Anton Ivanov, Manager

Maly Prospect 1/5

St. Petersburg, 197198, Russia

Tel: +7-812-230-5371

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

E-mail: sale@faeton.spb.ru

Source: BISNIS Representative in St. Petersburg

TULA, RUSSIA

Industry: Woodworking/Consumer Goods/ Furniture

Company: Micron; Micretal

Micron and Micretal are two small Tula-based companies

that employ 10 and 18 people respectively. Both companies

were founded in 1987 with no state participation. Micron specializes in producing wigs and other natural hair-based products. Micretal is an offspring of the Etalon Clock Plant and is

the only full-cycle manufacturer of clocks in Russia. Clocmaking composes 80 percent of the company’s output. In addition, the company assembles and repairs furniture, which is

20 percent of its output. Sales totaled US$70,000 for each company in 1998. The total work space owned by the two companies totals 450 sq. m. The primary consumers of Micretal’s

products are regional state and private companies. Micretal is

selling clocks at US$4,000-6,000 a piece to the federal and regional administrations. The company enjoys several tax breaks.

The companies have joined their efforts to attract foreign

investors. They are looking for American companies to set up

a joint venture to produce high-quality wooden construction

materials. A U.S. partner would supply equipment, while the

Russian companies will supply their existing production facilities, skilled work force, and technology. In addition, the companies plan to purchase a controlling stake in the Etalon Clock

Plant. Finally, Micretal seeks to establish joint clock production with a U.S. clock manufacturer.

Contact: Valery I. Sosnin, Director of Micron

54a, Gogolevskaya Street

Tula, 300000, Russia

Tel: +7-0872-361141, 264970

Fax: +7-0872- 361141

E-mail: bisnis@dol.ru

Source: BISNIS Representative in Moscow

TVER REGION, RUSSIA

Industry: Machinery

Company: Stromgeomash

The open joint-stock company Stromgeomash is located

off the Moscow-St. Petersburg highway in the city of Tver.

Stromgeomash was established in 1993 as a result of the

privatization of the Tver Project and Design Bureau. Seventysix percent of the company’s shares belong to the large enterprise Elektrosvyaz.

Stromgeomash is a machine-building and metal processing

enterprise that occupies 4,500 sq. m. of production facilities,

648 sq.m. of warehouses, 6,275 sq.m. of office space. The company employs 70 people.

Stromgeomash Director Yuriy Chesalov heads the

company’s business development. A member of the Russian
BISNIS SEARCH FOR PARTNERS - October 1999

7

Union of Manufacturers, Mr. Chesalov maintains strong relationships with local officials. In addition, Mr. Chesalov works

closely with foreign companies. The company has been aggressively pursuing new business opportunities. For example,

while making prefabricated houses and press-form,

Stromgeomash has constructed a special kiln-drier for decreasing the humidity of exported wood. Currently, Stromgeomash

has been chosen as a subcontractor for manufacturing kegs

for a well-known Tver brewing company. Eighty to 90 percent

of the beer produced in Russia is sold in bottles, but kegs are

becoming increasingly popular. Furthermore, Stromgeomash

has conducted negotiations with a large Western consumer

goods manufacturer to launch the processing of recycled plastic.

The Russian company seeks a U.S. partner to launch production of industrial products in Tver. Stromgeomash can offer

its premises, expertise, and favorable location. It can secure

credit guarantees from the regional administration. The company can conduct business in English.

Contact: Yuriy Chesalov, General Director

Stromgeomash, Promzona Lazurnaya, 35

Tver, 170017, Russia

Tel: +7-0822-337675

Fax: +7-0822-427154

Source: BISNIS Representative of Moscow

VORONEZH REGION, RUSSIA

Industry: Machinery

Company: Borkhimmash

Borkhimmash, a joint-stock company, was established in

1893 and is one of the oldest company in the heat exchange

industry. The company was privatized in 1993 and has no state

ownership. It employs 1,300 people. The company specializes

in producing heat exchange machinery. The machinery it produces has the following technical characteristics: tube casing

with fixed lattice, a diameter varying from 159 mm to 1,800 mm,

a flexible head, u-shape pipes with diameters varying from 325

mm to 1,200 mm, and allowed pressure of up to 4 Mpa and

modifications. Borkhimmash produces heat exchangers, different types of refrigerators, and other commercial equipment,

particularly for the oil and gas industry. The company is ISO90 certified (ISO-9001-94, ASME). Russia’s largest enterprises

– Gazprom, UES of Russia, NORSI, and Lukoil –account for up

to 80 percent of the company’s sales. Local oil/gas and, chemical and metallurgical refineries and plants account for 5 percent

of sales, while the remaining 15 percent of production output

has been exported to Cuba, the Baltic countries, Mongolia,

China, and Turkey since 1968. Since it was privitized, the company has generated US$7 million in revenues with a profit margin of 23 percent. The company’s financial statements were

audited by a Russian auditing company.

Borkhimmash is looking for an American partner/equity investor to expand its current business.

Contact: Sergey Bolshakov

Member of the Supervisory Board

Tel: +7-095-197-2473

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

E-mail: bisnis@dol.ru

Source: BISNIS Representative in Moscow

UKRAINE

Industry: Banking Equipment and Supplies

Company: Ecoprod

Ecoprod, established in 1992, specializes in procurement

and supplies of packaging and counting equipment for commercial banks and printers and publishers. The company rents

300 sq. m. of space. Its annual sales total approximately

US$700,000. The company’s subsidiary Ecoprod-2 has experience with negotiating a joint organic fertilizer production agreement with a Canadian company, Allied Environmental Modalities Inc., and a Polish company, Zielony Dom.

The company seeks to arrange a distribution agreement

and/or start a joint venture to import packaging and equipment

supplies for commercial bank operations from U.S. companies.

Contact: Serhiy Roslyak, Director

12 Aerodromna Vul.

Kiev, 151, Ukraine

Tel: +380 (44) 241-2867; 241-2161

Fax: +380 (44) 243 63 44

Source: BISNIS Representative in Ukraine

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Industry: Food Processing

Company: VEHA Ltd.

VEHA Ltd. was established in 1995. The company specializes in wholesale supplies of canned food. It owns 25,000 sq. m.

of industrial facilities. Its annual sales total US$2 million. The

company has three years of international business experience

in importing processed food with TEC International (Italy),

SUCAFINA (Switzerland), Bonduelle (France), Corpora

Tresmantes (Chili), and PepsiCo (Poland). The company plans

to expand its business to include processing and canning of

food locally (tomato paste, canned fruits, juices, etc.). VEHA

Ltd. has a food processing plant, built in 1995, which has not

started operations yet. The plant is fully equipped but needs

some renovation.

VEHA Ltd. seeks a U.S. investor to start production of tomato paste, ketchup, canned fruits, and concentrated juices. A

business plan in English is available upon request.

Contact: Jury Vasilevski, Director

28 Predslavianska Vul., Suite 1

Kiev, 252006, Ukraine

Tel: +380-44-268-0525

Fax: +380-44-268-8155

Source: BISNIS Representative in Ukraine
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NOTICE

BISNIS is pleased to gather and disseminate to U.S. companies promising Search for Partners leads from the NIS.

Companies that wish to pursue these leads should directly

contact the NIS company via the contact information listed.

BISNIS makes every effort to obtain valid contact information, but making contact with companies in many regions

of the NIS can be difficult. Telephone calls to NIS companies may be hampered by the limited number of international and local lines in the NIS. Therefore, persistence is

the key to contacting them via telephone. Additionally, not

all NIS companies have fax machines that operate 24 hours

a day. Sometimes several attempts may be necessary before

a connection can be made. If you are having trouble reaching a company, try phoning/faxing at different times of the

day, including during regular work hours (often 9AM to 6PM)

in the region you are trying to contact.

Note: Although BISNIS representatives in the NIS occasionally provide last-resort assistance in contacting local

companies listed in leads, BISNIS representatives in the

NIS do not: provide additional market information in response to direct inquiries from U.S. companies, assist with

negotiations, or conduct due diligence on local companies.

For additional commercial information about industries,

regions, and companies in the NIS, contact BISNIS in Washington, D.C.

BISNIS

The Business Information Service for the Newly Independent States

BISNIS is an information center for U.S. companies doing business

in the Newly Independent States of the former Soviet Union. Operated by the Market Access and Compliance unit of the International Trade Administration, BISNIS disseminates information in

print form, electronically, and through consultations by its staff of

trade specialists. For more information, please contact:

202-482-4655 (phone)

202-482-2293 (fax)

bisnis@ita.doc.gov (e-mail)

To call BISNIS toll free, dial

1-800-USA-TRADe (872-8723)

press 3 and then press 2

or visit the BISNIS Online website at

www.bisnis.doc.gov/bisnis/leads/leads.htm

Director: Anne Grey

Deputy Director: Trevor Gunn

Search for Partners Managing Editor: Joan Morgan