# Search For Partners

November 1, 1999
 
The BusinessInformation Service for the Newly Independent States (BISNIS) isthe U.S. government's clearinghouse for trade and investmentinformation on the Newly Independent States of the former SovietUnion.
              BISNIS publishes SEARCH FOR PARTNERS to help U.S. companies findinvestment opportunities in the expanding markets of the formerSoviet Union.
              SEARCH FOR PARTNERS is distributed via this biweekly e‑mailbroadcast, and a limited selection of these leads are publishedin a monthly newsletter.  Previous e‑mail broadcastsare available through the BISNIS home page, at: www.bisnis.doc.gov.  To receive thebiweekly report, e‑mail BISNIS at [email protected] or call (202) 482‑4655.
              These opportunities are provided solely as an informationalservice and do not represent an endorsement by the U.S.Department of Commerce.  Verification of these leads is theresponsibility of the reader.
 
Index ofInvestment Opportunities     
 
1.               Azerbaijan - Food ProcessingMachinery
2.               Kyrgyzstan - Construction andConstruction Materials
3.               Gagarin, Russia -Packaging
4.               Kaluga, Russia - Trading andRefrigerating Equipment
5.               Komi, Russia - Oil and Gas
6.               Krasnoyarsk, Russia - Water andAir Filters
7.               Novosibirsk, Russia -Construction Materials
8.               Samara, Russia -Pharamaceuticals
9.               Tyva, Russia - Mining
10.            Tyva, Russia - Mining
11.            Tyva, Russia - Mining
12.            Yuzhno-Sakhlanisk -Fisheries
13.            Uzbekistan - Light IndustryEquipment Production
14.            Uzbekistan - FoodProcessing
15.            Uzbekistan - FoodProcessing
 
***Azerbaijan***
 
1. Industry:Food Processing Machinery
Company: Production Unit Azerbles
              Production Unit Azerbles was established in 1989 and is a stateowned enterprise.  The company employs 120 people, and hasone million hectares of land used for forestry and a foresteconomy – forest zones, plantations, planting berries,spices and medical herbs, manufacturing, office, and warehousefacilities.   The land is located in different zones ofthe Azerbaijan Republic.  All the facilities are state-ownedas the company itself is fully owned by the state.  The mainactivities of the company are collection, preparation andprocessing of forest fruits and berries, spices and medical herbs- juice, jam, concentrate, puree, additives, herbal potion, dryfruits, food dyes, ether oil, and medicines.  All productsare ecologically safe.  The total volume of trade isapproximately US$50,000 annually.  Its major clients arelocal companies in the food, medical, and cosmetics industries.
              Azerbles is interested in setting up a joint venture with anAmerican company in Azerbaijan to expand and modernize itscurrent production infrastructure and organization, and to startnew production lines. 
              The company will help in the production sphere, with its laborforce, rehabilitation of "green" fields, and use of the availablescientific research materials.  A U.S. company would providenew technology, management training, equipment for production,financing for upgrade projects, and sales of finished products inlocal and foreign markets. 
              The company is preparing a business plan in Russian, it does nothave the language skills for conducting business in English.
Contact: MusaMamedov, Director
Safarov Gudrat,Head of the Department of Forestry and Food Products
Government House
Baku, Azerbaijan
Tel:+994-12-932137, 932137
Fax:+994-12-989402
E-mail: [email protected]
Source: BISNISRepresentative in Azerbaijan
 
***Kyrgyzstan***
 
2. Industry:Construction and Construction Materials
Company: DeltaPlus
              The private company, Delta Plua, was established in 1997. The company specializes in production and assembly of light metalstructures and buildings, and installation of heating, water andsewage systems for buildings.  It has 21 employees and owns1,300 sq. m. of land, including 250 sq. m. of industrial andwarehouse space located in the outskirts of Bishkek.  In1998, the company's sales amounted to US$347,000.  It sellsits products primarily to foreign companies located in theBishkek Free Economic Zone.
              Currently, the company is seeking a U.S. partner to establish ajoint venture for production and assembly of prefabricatedbuildings.  The company can prepare a business plan inEnglish upon request and can conduct business in English.
Contact:Vladimir Romashko, Director
18, KulatovStreet
Bishkek, 720005,Kyrgyzstan
Tel: +996-517-7607 53,
Tel/Fax:+99-312-28 86 29
E-mail: [email protected]
or CommercialSection of the U.S. Embassy-Bishkek
171, ProspectMira
Bishkek, 720016,Kyrgyzstan
Tel:+996-312-5512 41
Fax:+996-312-5512 64
E-mail: [email protected]
Source: BISNISRepresentative in Kyrgyzstan
 
***Gagarin,Russia***
 
3. Industry:Packaging
Company:Gagarinsky Svetotechnichesky Zavod
              Gagarinsky Svetotechnichesky Zavod (GSTZ) is a big enterprise inthe Smolenst Region, employing 400 people. It has a large andwell‑developed production site including productionfacilities, offices and storage space, since the 1950's, with acurrent market value of US$18 million, which the company willcontribute to the project.
              The company intends major restructuring of its production toproduce packaging materials instead of currently producedlightening appliances for technical purposes.  GSTZ'sambitious plans are proven in its business plans available bothin English and Russian.  GSTZ seems to have explored a greatdemand for packaging materials, which the company said is 90percent supplied by  imports.
              The company requires US$35 million to purchase or lease packagingmaterials production equipment. It seeks an American partner toestablish long‑term cooperation and participate in theproject, which, as the company's business plan claims, will bepaid back in 12 months, with total coverage in two years. The company has its bank account in Sberbank.
Contact: AlekseyDmitrievich Phillipov, Director General
73, SovetskayaStreet
Gagarin, 215010
SmolenskayaOblast
Gagarin, Russia
Tel:+7-08135433-87
Fax:+7-08135431-87, 431-02
Source: BISNISRepresentative in Moscow
 
***Kaluga,Russia***
              
4. Industry:Trading and Refrigerating Equipment
Company: Servi
              Servi is a medium‑sized production company in the Kalugaregion. It employs 70 people and is engaged in manufacturingtrading and retail equipment for primarily local retailstores.  The company possess production facilities necessaryfor the realization of the project and requires financing of justUS$100,000, compared to its turnover.
              The company's management seems to be fairly experienced withWestern business practices.  S.V.Pronin, a director of thecompany has been selected for the U.S. Government’s“Business for Russia" program.  Additionally, thecompany is a member of the regional Chamber of Commerce, whichhas provided positive references about Servi.
              The company is looking for an American manufacturer ordistributor of trading and refrigerating equipment for retailersto import or assemble at its existing facilities.  Thecompany can partially cover project expenses, has a business planand can communicate in English.
Contact: Sergey V. Pronin, Director
Tatyana Larina,Marketing Specialist
102, TulakayaStr, Office 25
Kaluga, 248003,Russia
Tel:+7‑084‑22-384‑24, 384‑29
Fax:+7‑084‑22-392‑70
E‑mail:[email protected]
Source: BISNISRepresentative in Moscow
 
***Komi,Russia***
 
5. Industry: Oiland Gas
Company: WestOil
              The following is information on a business/investment opportunityto develop an oilfield of about 10 million tons in Komi Republic,Russia. This project may present commercial opportunities forU.S. companies.
              West Oil, a joint-stock company, is a private Russian companywhich holds a license (valid till 2022) for exploration andextraction of hydrocarbons in the Komi Republic. The licenseterritory of about 1,000 sq. km is located 6 km away from theoperating distribution pipeline, 15 km from the railroad, 22 kmfrom the Ukhta Refinery and 24 km from the Transneft-operatedtrunkline.
              Geological and geophysical data suggest about 9.2 million tons ofrecoverable (C3-category) resources while total crude resourcesamount to about 23.8 million tons. Both geo data and a businessplan are available. The annual planned production is estimated at400-500,000 tons.
              Positive factors that would determine the production cost are asfollows: low transportation costs; zero expenses on socialinfrastructure; maximum drilling depth to 1,300 m.; and only 20percent of produced oil would be marketed in the Komi Republic.
              West Oil JSC estimates that total investment of about US$8million is required to purchase the equipment, build a power lineand a connecting pipeline as well as an access road. Thepreferred project financing scheme should be as follows: investorfinances the start-up phase, getting crude as payback; the stockis divided in 50-50 proportion (a joint venture arrangement);further operation financing based on production sharing.
**Contact:**Igor Kuvayev, General Director,
StanislavSheveliov, Deputy General Director
West Oil JSCRepresentative Office
GeneralKarbyshev St. 8, Build. 3, Office 202
Moscow, 123154,Russia
Tel/Fax:+7-095-946-8004
Source: U.S.& Foreign Commercial Service, Moscow
Note: The U.S.& Foreign Commercial Service office in Moscow wouldappreciate your feedback on this report.  Please share yourcomments and suggestions with them. U.S. companies which submitproposals as a result of this announcement are encouraged toinform the U.S. Embassy, Moscow office of the U.S. & ForeignCommercial Service:
U.S. &Foreign Commercial Service Moscow
BolshayaMolchanovka, 23/38
Moscow, 121069,Russia
Tel:+7-095-737-5035
Fax:+7-095-737-7033
E-mail:[email protected]
 
***Krasnoyarsk,Russia***
 
6. Industry:Water and Air Filters
Company: AquaBona
              Aqua Bona was established in 1996.  The company specializesin retail and wholesale of water filters, air cleaning systems,air humidifiers, gas, water and heat meters, in-sink-erators,pumps and pump stations, thermoses, and disposable materials andsupplies for plumbing. The company rents four retail outlets instores in Krasnoyarsk, and owns production and warehousingfacilities.
The company hasinternational business experience with Brita (Germany), Honeywell(USA), and INKA (Finland).
              The company seeks to provide distributorship/dealership servicesto U.S. companies specializing in water and aircleaning/conditioning systems, various types of meters, pumps andpumping equipment/stations, and other related products.
Contact: SergeiLazovsky, Director
6 DubenskyStreet, Office 402
Krasnoyarsk,660032, Russia
Tel:+7-3912-234935
Fax:+7-3912-223226
Source: BISNISRepresentative in Novosibirsk
 
***Samara,Russia***
** **
7.Industry:  Pharmaceuticals
Company: JSC Volgapharm
**              **The joint stock company Volgapharm was established in 1993 fordevelopment and production of biomedical articles and medicines.The company currently employs 25 people. The company has 200sq.m. office and 20 000 sq.m. of production space.
Activities:
pharmaceuticals wholesale and retail - 50percent of all activities; construction of pharmaceuticalsproduction - 30 percent; research & development - 10 percent;investment projects - 10 percent. Annual sales: 1996 - $ ; 1997 -$ 1,000,000;1998 - $ 300,000.
              The main customers of the company are local private businesses(70 percent) and government (20 percent). Volgapharm is the ownerof essential intellectual property and has more than 50 patentsand author's certificates for inventions. The company has "GoldenPalm" and Grand Prix international rewards for the productionquality, technology innovation activity and exemplary management.They also hold a number of state awards in the field of medicalequipment and device creation.
              The other strong points of the company are: solid experience ofworking in the regional pharmaceuticals market; strong contactsin local government; flexible and open-minded management, highlyqualified staff; and the possibility of entering the C.I.S. andthird country markets.
              Volgapharm has federal and regional licenses for packaging,storage and distribution of prepared medicines; and a federallicense for work with controlled substances. There are warehousesfor finished products (more than 2000 sq. m.), an equippedwarehouse for controlled  and poisonous substances, and acustom's warehouse.
              Technology and equipment are needed. Volgapharm is ready tocontribute production facilities and warehouses, staff; and allorganization / registration /customs/ certification clearanceprocedures.
              There are unique federal and local taxation advantages forpharmaceutical/medical production. Raw materials andpre-fabricated substances imported for joint venture productionare duty free in Russia.
              Volgapharm is interested in pursuing two forms ofcooperation:              1) They seek a joint venture/investor partner to start newpharmaceutical production of infusion solutions, non-permanentintravenous injections, and a wide range of medicines in tabletand capsule form in accordance with Generic Medical Products.
              2) They are interested in becoming a distributor ofpharmaceuticals that are in demand and price competitive inRussia and other CIS markets.
              The company is ready to answer any proposal and can conductbusiness in English. A business plan is available upon requestand can be reestimated for a particular project or elaboratedwith a partner.
Contact: AnnaRozhanskaya, Research and Development Director
10-A OsipenkoStreet
Samara, Russia
Tel:+7-8462-34-76-36; 34-65-94
Fax:+7-8462-34-17-52
E-mail: [email protected]
Source: BISNISRepresentative in Samara
 
***Novosibirsk,Russia***
 
8. Industry:Construction Materials
Company:SpecZhelezoBeton
              SpecZhelezoBeton was established in 1974 and privatized in 1993,and has 1,429 employees.  It owns production and warehousingfacilities with sufficient space for offices, storage andproduction.  It specializes in the production and sale ofreinforced concrete, and mineral wool with a fiber diameter of0.5 ‑ 1.5 microns.  The main buyers of its productsare local construction companies, such asNovosibirskGrazhdanStroi, SibAcademStroi, Sibir and others.
              Mineral wool is a more efficient and cheaperthermo‑isolation material than glass wool traditionallyused in the construction industry in Russia. New technologydeveloped by the company allows it to produce the wool byprocessing rocks. The product is cheaper than imported isolationproducts produced by URSA and ISOVER. The technology isecologically clean, and utilizes waste products in the miningindustry
              The company holds all the licenses necessary to produce itsproducts. The company has strong government contacts.  Thecompany plans to expand its production of mineral wool to anannual amount of 6,000 cu. m.
              The company seeks an investor to produce the mineral wool. The estimated amount of investment is US$60,465. Pay‑backperiod is 3‑4 years. The company will provide itstechnology, production and other facilities, and the rawmaterials.  The company can conduct business in English, anda feasibility study in Russian is available upon request.
Contact: Valery Otmakhov, Director
Gorny Village,Toguchin District
NovosibirskOblast, Russia
Tel:+7-3832-295685
Fax:+7-3834-023506
Source: BISNISRepresentative in Novosibirsk
 
***Tyva,Russia***
 
9. Industry:Mining
Company: KobaltTyvy
              Kobalt Tyvy, an open joint stock company, was established in 1970and privatized in 1997.  By 1991 the company had beenprocessing 75,000 tons of ore annually, and producing 320 tons ofcobalt concentrate, and 590 tons of nickel concentrates. The company holds all licenses necessary for conducting miningactivities. The company has strong government contacts.  Thecompany plans to re-establish production of cobalt, nickel,copper, silver, and bismuth.
              The company seeks an investor to establish highly effectiveproduction of concentrates of cobalt (709 tons annually), nickel(948 tons), copper (153 tons), silver (1140 kg), and bismuth(14.1 tons). The total volume of investment required for theproject implementation is 733.8 million rubles (US$28.2 million).The project is designed for five years (2000 - 2005). The companywill invest 265 million rubles (US$10.2 million). The investmentvolume expected from an investor is US$18.2 million. The pay-backperiod is 89 months. The project is strongly supported by thefederal and local governments, and guarantees to investors willbe provided at the federal level. A business plan in Russian isavailable upon request.
Contact:Professor Vladimir Lebedev, Supervisor of the Project
11, KalininStreet
Tyva, 667011,Russia
Tel:+7-39422-36555, 33483
Fax:+7-39422-36555, 37459
Source: BISNISRepresentative in Novosibirsk
 
***
 
10. Industry:Mining
Company: KaraAldyn
              Kara Aldyn, an open joint stock company, was established in1998.  The company specializes in producing absorbents,ferrous alloys, petroleum, kerosene for airlines, and liquifiedgas. The company holds all licenses necessary for conductingmining activities. The Ministry of Fuel, Energy andTransportation of Tyva Republic, and the Government PropertyManagement Committee of the Tyva Republic are among theshareholders of the company.  The company plans to establishproduction of coal, kerosene (44,000 tons), petroleum (36,000tons), liquified gas (6,000 tons), adsorbents (90,000 tons),ferrous alloys (24,000 tons), using highly efficient technology.
              The company seeks an investor to establish the production. Thevolume of investment required for project implementation is US$37million. The project is designed for five years (2000 ‑2005). The pay‑back period is 51 months. The project isstrongly supported by the federal and local governments, andguarantees to investors will be provided at the federal level. Abusiness plan in Russian is available upon request.
Contact: PeterTkachenko, Deputy Minister
11, KalininStreet
Tyva, 667011,Russia
Tel:+7‑39422‑32693
Fax:+7‑39422‑35067, 37459
Source: BISNISRepresentative in Novosibirsk
 
***
 
11. Industry:Mining
Company: BayanKol
              Bayan Kol, an open joint stock company, was established in1998.  The company plans to process ores mined atBayankolsky deposit, to produce alumina (58.5 thousand tonsannually), cement (330,000 tons), rubidium and gallium chlorides(23.5 tons).  The company holds all licenses necessary forconducting mining activities. The company has strong governmentcontacts: Ministry of Industry, Ministry of Natural Resources,State Property Management Department of Tyva Republic, and theKrasnoyarsk Aluminum Plant are among the shareholders of thecompany.
              The company seeks an investor to establish the production ofalumina, cement, rubidium and gallium chlorides. The project isdesigned for 4 years (2001‑2005). The total investmentvolume required for implementing the project is 970 millionrubles (US$37.30 million). The company will contribute US$13.26million into the project. Loans from commercial banks under thefederal government guarantees attracted to the project 405million rubles (US$15.56 million). A U.S. investor is required toinvest 220 million rubles (US$8.46 million). The pay‑backperiod is 72 months.
Contact:Professor Vladimir Lebedev, Supervisor of the Project
11, KalininStreet
Tyva, 667011,Russia
Tel:+7‑39422‑36555, 33483
Fax:+7‑39422‑36555, 37459
Source: BISNISRepresentative in Novosibirsk
                                                                        
***Yuzhno-Sakhlinsk, Russia***
 
12. Industry:Fisheries
Company: OMIKS
              OMIKS has been involved in shrimp fishing since 1994 (The year ofthe company’s establishment).  OMIKS is a closedjoint‑stock company, and the owners of the company sharesare private companies and individuals.  Number of employees–10 (in the office), plus 60 – the crews of twovessels.  The company owns two vessels – one forcatching shrimp at a depth of more than 400 m., and another forshallower depth shrimp fishing.  Office facilities areavailable in the center of Yuzhno‑Sakhalinsk, with a totalarea of about 120 sq. m., as well as additional facilities on theground floor, of the same area, that has been rebuilt as a publiccafe and a shop.  The company has  internationalbusiness experience with Maruha Corporation, Japan.  OMIKSsells products only to Japan currently, no domestic market isinvolved.  The possibility of trade with China is also beingconsidered.
              The company seeks a partner that can provide a vessel similar tothe one already existing in the company (a mid‑sized vesselwith freezer facilities) on a leasing basis.  OMIKS willconsider different possible options for payment from thepotential partner. 
Contact:Vladimir Ivanovich Sarachakov, Executive Director
14,Dzerzhynskogo Street
Yuzhno‑Sakhalinsk, 693000, Russia
Tel: +7‑4242‑772747
Fax: +7‑50441‑62128
Source: BISNISRepresentative in Yuzhno-Sakhalinsk
 
***Uzbekistan***
 
13. Industry:Light Industry Equipment Production
Company:Mekhmash
              The joint-stock company Mekhmash specializes in processing metalsand producing  metallic products, industrial equipment forthe light industry sector, construction, and other sectors.
              The company was established in 1974 and privatized in 1995. Since1997, the company has started producing electric carts with aloading capacity of 2 tons. Electric carts are employed forinternal use. The company employs 250 people. Its annualproduction volume is 75 million Soum (at the official bank rateUSD$1 = 136 Soum and at the market rate US$1 = 550 Soum). Thecompany’s primary customers are construction companies,agricultural machinery and supply organizations, and privatefirms. The company’s production area is 24,429 sq. m.
              Mekhmash is searching for foreign investors in order to set up ajoint venture to produce  cranes and small electric carts,electric cranes, and auto-cranes. The company needs the followingfrom an American partner: technical specifications of theproject, and specific components.  The company has abusiness plan in Russian. A local auditing company conducted itslast audit.
Contact: Tokhir Ziyatov, Director
27 OromgohStreet
Namangan,716003, Uzbekistan
Tel:+998-369-22-4-43-94; 4-45-29
Fax:+998-369-22-4-45-29
Source: BISNISRepresentative in Uzbekistan
 
***
 
14. Industry:Food Processing
Company: PolatCompany Ltd.
              The Uzbek-Turkish joint venture Polat Company Ltd., wasestablished in Uzbekistan in 1994 with a staff of 42 people. Thecompany mainly produces confections and bubble gum in Uzbekistan.The company is also involved in importing food stuffs, medicalmaterials and detergents to Uzbekistan as well as investmentprojects for local production. In early 1999, Polat opened aplant in Uzbekistan to produce stainless steel products, such asforks, spoons, etc. The company owns a 3-floor building with atotal area of 2,700 sq. m. The company also owns 1,250 sq. m. ofland. The company has annual sales of US$4 million forconfections and bubble gum.  The annual  productionvolume is 2,650 tons. Annual sales of stainless steel is US$1million (200 tons). Primary customers of the company’sproducts are private enterprises and foreign companies in the NISincluding the Central Asian countries.
              The company is interested in cooperating with American companiesin order to establish a margarine production plant in Uzbekistan.The company needs the expertise of a U.S. company to producemargarine and also a complete set of equipment is needed forproduction. The company has a business plan available. It canconduct business in English, and is ready to become arepresentative or distributor of American products, such asconfections or medical instruments.
Contact: Hasan Kara, General Director
Sait AhmetCatkal, Assistant to the General Director
41 Mukimi Street
Tashkent,Uzbekistan
Tel:+998-712-53-50-20.53-23-79
Fax:+998-71-120-71-36
E-mail: [email protected]
Source: BISNISRepresentative in Uzbekistan
 
***
 
15. Industry:Food Processing
Company: AsakaPoultry
              Asaka Poultry, a joint-stock company, was founded in 1971 underthe Association Uzpishprom (Uzbek Food Industry). The company has34 employees. Its main concentration is poultry breeding and eggproduction. However, the company is also producing otherproducts. It produces, per year, 50 tons of meat, 4 million eggs,40 tons of fruit, 50 tons of vegetables, 20 tons of eggplant, 20tons of cotton, and 300 tons of flour. The total area of thecompany’s facilities is 212 hectares of land including agardening area of 27 hectares. The company has an old Russianmade Universal-55 incubator with 21 units and the capacity toproduce 1 million eggs annually and 770-850,000 birdsannually.  One slaughterhouse has a capacity to produce3,000 boiled birds per hour. The sausage shop produces 200 kg ofproduct per shift. The conservation shop produces 1 millionconditional bottles annually.  A four -board refrigeratorcan contain 240 tons of meat and it has a warehouse with thecapacity to contain 500 tons of product. Total sales for 1998comprised 32.767 million Uzbek Soum (at the official central bankrate US$1 = 136 Soum; at the market rate US$1= 570 Soum;) Thecompany seeks an American partner to expand production in orderto meet greater market demand.
Contact:Mehnatobod, Asaka District
Andijan Region
Uzbekistan
Tel/Fax:+009-37436-3-28-09
Source: BISNISRepresentative in Uzbekistan
 
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              BISNIS is pleased to gather and disseminate to U.S. companiespromising Search for Partners leads from the NIS. Companies thatwish to pursue these leads should directly contact the NIScompany 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 canbe difficult.  Telephone calls to NIS companies may behampered by the limited number of international and local linesin the NIS.  Therefore, persistence is the key to contactingthem via telephone.  Additionally, not all NIS companieshave fax machines which operate 24 hours a day.  Sometimesseveral attempts may be necessary before a connection can bemade.  If you are having trouble reaching a company, tryphoning/faxing at different times of the day, including duringregular work hours (often 9 am -6 pm) in the region you aretrying to contact.
              Note: Although BISNIS representatives in the NIS occasionallyprovide last-resort  assistance in contacting localcompanies listed in leads, BISNIS representatives in the NIS donot: provide additional market information in response to directinquiries from U.S. companies, assist with negotiations, orconduct due diligence on local companies.
              For additional commercial information about industries, regions,and companies in the NIS, contact BISNIS in Washington D.C.